What's the tax rate for independent contractor? Need help figuring out quarterly payments

The 15.3% you're referring to is just the self-employment tax portion (Social Security and Medicare), which is separate from income tax. As an independent contractor, your husband is essentially both the employer and employee, which is why he needs to pay both halves of these taxes. For tax planning, setting aside 25-30% is actually a good rule of thumb because you'll owe both the self-employment tax AND regular income tax. The exact amount depends on your total household income and tax bracket. For deductions, you're on the right track! Besides the vehicle, mileage, and tools, don't forget about: - Home office deduction if he uses part of your home exclusively for business - Business insurance premiums - Business phone and internet costs (proportional to business use) - Work clothing specific to construction that isn't suitable for everyday wear - Professional licensing or certification costs - Continuing education related to his trade - Health insurance premiums (potentially deductible) - Retirement plan contributions like a SEP IRA or Solo 401(k) Since you missed quarterly payments for 2023, you might face some penalties, but filing and paying promptly will help minimize these.

I was in the exact same situation last year and found this amazing resource - https://taxr.ai - that totally saved me. I was completely lost about what I could deduct as a self-employed person and how much I should be setting aside. This tool analyzed all my income and expenses, showed me deductions I had no idea about (like a portion of my cell phone bill and internet since I used them for work), and calculated exactly how much I should be paying quarterly. It even helped me figure out the penalties for my late quarterly payments, which weren't nearly as bad as I feared! For construction specifically, I learned you can also deduct things like liability insurance, specialized work clothes (like steel-toed boots), and even certain meals when meeting with clients or traveling to distant job sites. It was seriously eye-opening.

Just wanted to follow up - I decided to try taxr.ai after posting here, and wow! It identified almost $4,700 in deductions I would have completely missed for my small business. The interface walked me through everything step by step and even flagged some expenses that were borderline so I could decide whether to claim them. The best part was it showed me exactly how to handle my quarterly payments going forward, with calendar reminders and everything. I've been doing this wrong for two years and probably overpaid thousands in taxes! Wish I'd known about this sooner. For anyone else new to self-employment, definitely check it out before trying to figure it all out yourself.

After going through the self-employment tax nightmare last year, I finally found a way to actually talk to a real person at the IRS about my specific situation using https://claimyr.com. I spent WEEKS trying to call the IRS directly for guidance on my construction business deductions and kept getting disconnected or waiting hours. Claimyr got me connected with an actual IRS agent in about 20 minutes who explained exactly what I needed to do about my missed quarterly payments and confirmed which deductions were legitimate for my situation. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent even helped me set up a payment plan for what I owed so I didn't have to pay the penalties all at once. Honestly wish I'd known about this service months earlier - would have saved me so much stress!

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway out of desperation because I needed to ask about a CP2000 notice I received related to my independent contractor income. I'd been trying to reach the IRS for THREE WEEKS with no luck. Used Claimyr and was literally talking to an IRS agent in 17 minutes. The agent explained that I had miscategorized some of my construction material purchases and helped me understand how to properly document them as business expenses instead of personal purchases. This saved me from paying about $2,100 in additional taxes! The service is legit and honestly worth every penny considering the hours of hold music I avoided and the tax money I saved by getting actual clarification. Sometimes being proven wrong is a good thing!

Don't forget about business insurance! As a contractor myself, I discovered that general liability insurance, equipment insurance, and even health insurance premiums can potentially be deducted. This saved me thousands last year. For your husband specifically in construction, he might also be able to deduct: - Professional association dues - Subscriptions to trade publications - Work gloves, boots, and specialized clothing - Temporary job site rentals (like portable toilets) - Permits and inspection fees - Subcontractor payments (if he hires help) One thing I learned the hard way: keep METICULOUS records with dates, amounts, and business purpose for everything. Take photos of receipts before they fade. The IRS loves documentation from contractors.

Has anyone used TurboTax Self-Employed for this? I'm in a similar situation and wondering if it's worth the extra cost compared to the regular version.