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Lane, JD, CFP, MBA, CRPS
Category: Tax
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Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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# I am in the 20% tax bracket if I make \$220.00 a month before

I am in the 20% tax bracket if I make \$220.00 a month before tax, how much more should I earn to make the \$220.00 after taxes and 1099 fees.
thank Don

Lane :

Lane :

he way you'd want to do that is to think of it this way; WHAT times 120% = 220 or said differently WHAT when 20% is taken off will still leave 220

Lane :

So you multiply 220 x 120% (or 1.2) and that's 264

Customer:

say agan

Lane :

At 20% it's around 264

Customer:

is there a fee to file a 1099

Lane :

The 1099 is what you get from the person paying you, (they'll also send a copy to IRS) so you can use it to do your taxes for the year

Lane :

no cost to file BUT if the company DOESN'T send it to the contractors and to the IRS the IS a penalty

Customer:

thanks

Lane :

Your welcome - let me know if I can help further - positive feedback appreciated

Thanks Don!

Just to make the math more DIRECT ... simply divide by 1 - 20%

So the number if you're in the effective 20% bracket is actually 275.

200 divided by .8 = 275

Then to prove it, 275 x 20% = 55

and 275 minus 55 = 220

So, again, whatever the tax rate is ... Divide the number you want to end up with by (1 - that rate)

Thanks again
Lane