Ostroff, Fair and Company
*Ostroff, Fair and Company>>>United States Taxes

I am self employed now as a caregiver.?


do i just take out for federal taxes are do i have to take out for social security and medicare also

Depending on how much you make, you may need to file quarterly tax estimates on form 1040ES.
You will be paying social security taxes of 15.4% plus your federal income tax.
If you live in a state that has an income tax you may need to make quarterly tax estimate payments to the state also.
Usually if you are going to owe $1,000. in tax you should pay quarterly estimates to avoid fines or penalties. Source(s): http://www.irs.gov/businesses/small/arti...
All of the above, though your employer should withhold on you if you are working in 1 household. If you are traveling to different homes to provide specific types of care, you need to withhold (give or take) 25% into a savings account to cover Social Security, Medicare & income taxes. Otherwise, you will be in a pickle when it is time to file taxes. BTW, you need to open a separate personal checking account through which to run ALL your self-employment income & expenses. This way, your checking register will help you keep records for your business.
Social security and medicare also - that will be 15.3% of your net income after you subtract any eligible expenses.
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