Tax Table Self Employed
February 18th, 2007
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Question: As a nanny, how should I handle taxes?
I know there is a website www.4nannytaxes.com where you can have the family take care of taxes for you but I see that it is expensive and that families usually don’t want to do this. I also know about the option to file as self employed. What are the benefits of each? Disadvantages? Is it hard to file as self-employed and how exactly do I do this? I looked at the IRS website but its a bit confusing. Can anyone spell this out simply for me? lol This nanny tax thing is new to me as I was always paid under the table. This time around I want to establish my credit. Also, what exactly in a Schedule C? Whats a 1099? Thanks so much for everyone’s help!!!
Oh! If I get paid say $14/hr for 45 hours a week, how much can I expect to pay in taxes?
Answer: Schedule C is a form that you complete and send to the IRS. You can download it from http://www.irs.gov/pub/irs-pdf/f1040sc.pdf.
There are several different Form 1099′s; the one that relates to your question is Form 1099-MISC. This is a form used by those who pay you use to tell you and the IRS how much they paid you.
In addition to these documents, you would also have to complete Schedule SE and Form 1040.
Taxes are based on annual totals. $14 per hour times 45 hours per week times 50 weeks per year (I am assuming that you miss you weeks per year for vacation or other reasons) = $31,500 per year. Using that figure, your self-employment tax would be $4,450.81 and your income tax would be somewhere between $0 and approximately $4000, depending on your marital status, the number of dependents that you are allowed to claim, whether someone else can claim you as a dependent, the amount of your deductions, etc.
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A Chihuahua in the small dog area visits with one of the dogs in the large dog area during the official opening of the Mount Airy Dog Park, at Watkins Park on April 1.
Self employment: the dance instructor
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