Say someone makes $100,000 as a fulltime W2 employee and an additional $10,000 as a freelance 1099 employee. How much would he owe on just the freelance portion of his taxes?
My understanding of it is this:
He's in 28% bracket and would have to pay an additional 7.65% self-employment tax on the $10k. So he would owe (28% + 7.65%) X $10,000 = $3,565 for his freelance work. Is this correct or is it more complicated?
My understanding of it is this:
He's in 28% bracket and would have to pay an additional 7.65% self-employment tax on the $10k. So he would owe (28% + 7.65%) X $10,000 = $3,565 for his freelance work. Is this correct or is it more complicated?