I Made $23,000 Last Year how much do i owe to the IRS ?
Im a self employee.. i made $23,000.00 how much do i owe them???
- CarVolunteerLv 61 decade agoFavorite Answer
If that was your net profit from self-employment, you owe about $3,450 in self-employment tax (Social Security and Medicare). Half of that is taken off your income for income tax purposes, leaving $21,275.
Subtracting your $3500 exemption (assuming you are not a dependent) leaves $17,775. Subtract your standard deduction of $5450 and get $12,235. Tax on that Is $1,433. The income tax single, no dependents.
The total then is about $4,833.
- 4 years ago
An installment agreement, where you agree to pay a fixed amount each month over time, will cost you $105, and interest charges will still accrue. An installment agreement will not result in your being able to keep your refund. Quote from the IRS: "As a condition of your installment agreement, any refund due to you in a future year will be applied against the amount you owe. Therefore, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. The IRS will automatically apply the refund to the taxes owed. If the amount of your refund does not take care of the tax debt; then your installment agreement continues until all of the terms are met." So, doing an installment agreement is pointless and expensive. The Earned Income Credit and Additional Child Tax Credit have been made more generous this year. Also, if you and your spouse have been working, there is an $800 Making Work Pay credit that may benefit you depending on how much was withheld for taxes. Get you tax return done as early as possible and submit it. The sooner you pay off the IRS bill the better for you. Hopefully you will have some refund left over from the increased tax benefits that have been put in place this year.
- Badger BoiseLv 51 decade ago
Here is a rough estimate of what you will owe for federal, social security and medicare taxes for the year:
Annual Gross Pay - $23,000.00
Federal Withholding - $2,145.00
Social Security - $1,426.00
Medicare - $333.50
The above is based on you being single and claiming one exemption/dependent. Being self employed, you should be making quarterly payments for taxes, SS and medicare. If you have not done so, you could be charged a penalty in addition to your taxes . The IRS requires that at least 90% of your taxes be paid in prior to the end of the tax year.
I suggest you read the following IRS web page in regards to be self employed:
- ZacLv 51 decade ago
Way too much, say you only made $2300 if you didn't get a 1099 from one of the people you worked for (subcontractor stuff)
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- 1 decade ago
WHAT ARE U DOING!!