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jgordosea
jgordosea, Enrolled Agent
Category: Tax
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Experience:  I've prepared all types of taxes since 1987.
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I am considering an offer of 150,000 for a position. I live

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I am considering an offer of 150,000 for a position. I live in Colorado and file as Married filing jointly. I am trying to determine net income after federal, state taxes plus I will have to pay Self employment tax. Any ballpark idea of where that might leave me for net? Thanks so very much. FH
Submitted: 1 year ago.
Category: Tax
Expert:  jgordosea replied 1 year ago.

Greetings,

 

Is the 150K the gross self employment income?

Will there be expenses in the production of that income? What is the net after expense?

 

To determine net after tax income all of the details about your other income, and type,, dependents, deductions, credits, etc would need to be used to compute federal or state tax. Do you want to post all that (public forum here)?

 

Or do you not want to provide all that and just want an estimate of what the net income would add to your return for paying estimated tax so that a given rate (such as 15% for married income from about 146K - 223K can be used)?

 

Thank you.

Customer: replied 1 year ago.

Expenses are unkown. I am guessing 10k for a home office and related expenses.


 


Married filing jointly with no other dependents.


 


I am trying to determine (setting aside any other income from possible investments) and using the standard medical decuction, what net income after self employment tax, federal and state would be. So with 10k home office expenses, does that give you enough to help me?


 


so 150k gross self employment income is the starting point..oh- they will pay my medical, so that might be counted as income, which let's call 1200 per month...

Expert:  jgordosea replied 1 year ago.

Hello again,

 

The medical expense will presumably be tax free to you (as contractors and employees can be treated the same for a company plan).

 

If you have 140K of net income and no other income married joint with no dependents and no credits using standard deduction and two exemptions taxable income will be about 110,100.

Federal income tax estimate is 23,800.

In addition self employment tax of about 19800 is due on the net profit. For more details on this tax see http://www.irs.gov/taxtopics/tc554.html

Total federal tax about $43,600.

 

For 2013 federal rates please see http://www.forbes.com/sites/kellyphillipserb/2013/01/15/irs-announces-2013-tax-rates-standard-deduction-amounts-and-more/

 

Colorado state income tax using the same taxable income for Colorado as for federal of 110,100 at 4.63% rate is about $5,100.

Colorado rate is from http://www.colorado.gov/cms/forms/dor-tax/CY104EP.pdf

 

Rough estimate of net after taxes is 150,000 - 10000 expenses- 43,600 federal combined income and SE taxes - 5100 state income tax = 91,300.

 

If you have other income you can estimate about 20% for tax on that income (15% federal plus 4.63% state).

For example, if there is another 1200 per month x 12 months or about 15000 then that would be about 2250 added combined income tax.

 

Please ask if you need more discussion or clarification.

Thank you.

 

jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3093
Experience: I've prepared all types of taxes since 1987.
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jgordosea
jgordosea
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I've prepared all types of taxes since 1987.