Your are right. That link didn't work. anyways here is the URL:
Okay, so let's do some rough justice. The self employment tax alone is 15.3 percent.
So let's say you get your expenses up to 10,000, you'll then have 40,000 X 15.3% = 6,120 for that tax alone.
you still owe ordinary tax on that at what u would roughly guess at a marginal tax rate of about 29% so 40,000 * 20% = 8,000
So you have 8,000 + 6,120 = 14, 120 in taxes due for your business income alone.
With roughly ordinary taxable income of around 100,000 X 27% = 27,000
So how much have you paid in so far though your W-2 income? The 1099 income doe not withhold any tax
You are also subject to 9.3% CA state tax.
I think it; best you speak with a professional so you can get this all worked out and develop a tax plan. That may or may not include Incorporating, or forming a LLC. Generally in your situation, forming those entities really do not save you much in overall tax due, but does give you some legal protection.
Right now, I would change your W-4 from your job to 0 so that the max is withheld.
You need to consider making estimated taxes as well.
These are paid by using 1040 ES
It looks bleak. I know it does, but there are many many different options available for you to reduce your tax liability. The best way to do that is to sit down with a tax professional, hopefully a good one, I can give you a name in San Francisco, as I am in Sacramento, but this is an absolute must. I haven't mentioned AMT which is Alternative Minimum Tax, another area that you may be subject to.
Let me now if you would like a referral. This is extremely important because as I'm sure you heard, let us bean counters do your tax planning and prepare your taxes for you, while you do what you do best, ***** ***** make money, and focus on that.
Let me know how you would like to proceed, okay?