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I have a full time job as a normal employee (W2) which pays $127k / year. Having always been a W2, I know the familiar taxes on the check:

  • Federal Income Tax
  • State Income Tax (CA)
  • SSI
  • Medicare

I know that the total for SSI + Medicare is 15.3%, split evenly between employer and employee. I know there's formulas and stuff that determine FIT and SIT amounts (I think CA is very similar to the federal method, just on a smaller scale).

However, I now also have a 1099 situation, where it's $45k / year. I know I have to do the taxes myself on that, but everywhere I've read, it only ever mentions the 15.3% FICA that I have to pay all of myself.

But I can't find anything that mentions FIT or SIT. I don't want to naively think "Great, I don't have to pay federal or state income taxes!" There's no way you simply get away with that. I want to set aside the money for taxes each time I get paid so that when it comes to tax time next year, I won't have any big surprises and will basically be squared away. But I can't find how I'm supposed to calculate federal and state taxes (not the flat 15.3% for FICA). I think I also read something about once your total income goes over $150k combined W2 and 1099, the tax situation changes a bit too, so that complicates things further.

I just want to have an accurate figure of what I need to take out each time I get a check from the 1099 job, other than the 15.3% FICA figure, so that I don't still owe thousands to the IRS because I wasn't setting the right amount aside all year.

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    You should consult the IRS Small Business and Self-Employed Tax Center [irs.gov/businesses/small-businesses-self-employed]
    – user123993
    Commented Jul 22, 2023 at 22:09
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    This is way too wide. You're basically asking to explain to you how self-employment taxes and estimated tax payments work. Please go through the link in the previous comment and come back with a bit more focus.
    – littleadv
    Commented Jul 23, 2023 at 0:53
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    If you have both payroll (W2) and 'gig' (1099) income, instead of making actual estimated payments you can use W4 to request extra payroll withholding. 'FICA' (actually SECA) is 15.3% on 92.35% of 1099-NEC income less deductible expenses until it plus W2 income reaches the Social Security 'cap' which changes each year but for 2023 is $160,200; for 2022 it was $147,000 which may be the 'something' you read. Additional Medicare Tax also kicks in for earned income over $250k MFJ $125k MFS $200k otherwise.
    – dave_thompson_085
    Commented Jul 23, 2023 at 2:36

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I just want to have an accurate figure of what I need to take out each time I get a check from the 1099 job, other than the 15.3% FICA figure, so that I don't still owe thousands to the IRS because I wasn't setting the right amount aside all year.

With significant 1099 income in addition to your W-2 income you are now responsible for setting aside money and sending in money quarterly to the IRS.

Ignoring for a moment the FICA calculation, if you were to have 45K in 1099 income and you are in the 22% tax bracket then that gig income tax would require $9,900 in additional Federal income tax being sent in your quarterly payments. That amount is hard to cover just by making w-4 adjustments with changes to your w-4.

For federal responsibilities start with the Small Business and Self-Employed Tax Center. You will need to search the state tax website for their forms and requirements.

one other place to start is under a program run by the US Small Business Administration (a part of the federal government):Small Business Development Centers (SBDC). These centers can help small businesses get started. They are also experts on the local tax issues.

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