Now you just need to figure out when to pay your newly lowered tax bill: once a year, or once a quarterly? Once you've figured out all the write-offs you can take, you should see your taxable income start to shrink. And it never costs extra to file in more states.
Our tax filing app shows you the exact forms you'll need as a self-employed worker, no matter where you're based. To simplify things, try filing your taxes through Keeper. (Some states, like Alaska and Florida, don't collect any at all!)Īll this can be a lot to keep track of. State income taxes, meanwhile, vary widely depending on where you live. The amount of federal income tax you'll pay depends on which tax bracket you fall in. On top of your self-employment tax, you still have to file your own federal and state income taxes. To make sure you're prepped for it, try using a self-employment tax calculator so you know how much to save up. If this is your first year as a Flex driver, that 15.3% can land you with a tax bill much heavier than you're used to seeing. They come to 15.3% for you, compared to the 7.65% paid by traditional employees. When people talk about "self-employment tax," they're referring to this doubled payment of Medicare and Social Security taxes. That makes you responsible for paying both shares of tax. But you're legally considered both the employee and the employer here. But their employers give them a hand here, matching all of their tax payments. There are two parts to self-employment tax: Medicare taxes and Social Security taxes. These fall into two major categories: self-employment taxes and income taxes. (Hint: It involves tax write-offs!) But for now, let's talk about the not-so-fun stuff: all the taxes you'll have to pay.
As far as taxes go, you're on your own - which comes with some major headaches and some perks. For one thing, Amazon won't take care of withholding for you. Independent contract work means a lot of freedom on the job, but things can get tricky when finances come into play. Like rideshare drivers, real estate agents, and even small business owners, you belong to a growing part of the US labor force: people who want to set their own hours and be their own boss. If you drive for Amazon Flex, you're classified as an independent contractor - not an Amazon employee. The taxes you have to pay as an Amazon Flex driver
0 kommentar(er)
