How much will you owe in taxes if you made 24911 last year in freelance work and no taxes were taken out of your paychecks and you live in NYC?

Answer 1

You run your own business...as a freelance..and don't get paid on payroll. What you actually make is after you paid the deductions/expenses involved. You know that. That's how you do your pricing...and at least one reason why you'll charge differently for one job than the next....because one costs you more to do. You get paid a fee, or for your services, or for what your selling and you try and make a profit. Your probably aware of all those things, make sure you have all the benefits, and are proud that you are the boss of yourself and all...but now that it comes to handling the obligations like tax...you just can't understand anything financial?

So, I guess your asking for someone to calculate your tax return....and that's all you figure is needed to do so (how much money you billed and where you live)....and it makes sense to you this is a good place to do it? Wow...

How much tax reduces you pay depends on many, many things...not the least of which is what you consider tax. Many people group all their withholdings/reductions as a type of tax, but many may not be. Workers Comp, Unemployment, even FICA are all really more an insurance payment than a withholding against an income tax. And many must be paid either way, if your an employee or if your the proprietor.

The amount of tax you get back (or additional owed) depends on how much you paid in in estimated payments (if you didn't have payroll withholding). And you must make estimated payments through the year (basically quarterly, the last one for 2007 is due today, 1/15/08) if your above some very low income limits, or you will pay substantial penalties and interest.

The amount of tax withheld or eventually paid also depends on may things...obviously which state (or even city) your in, the amount of income your projected on earning over the year, (which helps determine your tax bracket and the percent that may be needed), as well as your filing status, number of dependents and other deductions (like interest paid on a home, charity, medical expenses, etc). For withholding, all these things can be adjusted for your circumstances by properly and completely filling out (or changing) the Form W-4 all employers ask you to, and then properly reporting them on your 1040.

Finally, there are a number of different legal ways for the payroll provider to calculate certain aspects of the amount to withhold...but overall they make only a small difference.

Remember, anything withheld is just being done as an estimated installment payment toward whatever tax, if any, you do ultimately owe. If too much is withheld, it is refunded. (Too little, and you could pay a penalty). Again, adjusting your W-4 is the way to correct for any of these circumstances