I'm a software developer living and working in the U.S. I work a regular, full time job, but I do a little bit of work on the side (computer repair, web design, etc.) to help pay down my college loans and start working towards being debt-free.
I don't make enough or work enough at these side projects to qualify as a business as opposed to a "hobby" (as the IRS likes to call it), but it's certaibly enough to make me think about increased tax liability.
What are some tips for estimating what I might owe for this miscellaneous income? My plan was to figure up a rough percentage estimate for last year's taxes, apply it to my side income, and put it in a savings account until April, but I would rather have it out of the way earlier if possible.
Also, I've only been thinking about federal taxes, but do state taxes apply as well (my thinking is "yes")?