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)
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.