What Percentage ? To set aside Weekly for O/O Taxes......

Take a modest fixed "salary" but EVERYTHING else needs to go into a lockbox then maybe pay the IRS 15% of gross in estimated quarterly taxes, and maybe a little to the state.

But you should be talking to an accountant.

 

I put 20% in to a saving for taxes, plates, quarterlies. Then 20% into savings for maintance, replacement. Pay my self 800.00 per week. Works out ok. At the end of the year at tax time if there is left over its bonuce for the household. Projects, IRA. But the household don't contribute to the trucking. Now ideally the trucking would never get touched for the household. But life happens and it gets robbed and I go out and make more. I however will not touch the account labled taxes.

 

Try 15 the first time it' different for everyone just a good starting point

 

Go grab the quickbooks self employed app, link your bank account and you'll know at least the self employment tax on a quarterly basis

 

I'm new to this too

 

I try to set aside 25 to 30 percent. Social is 15.3 percent. Fed and state tax will take the rest. This is based on my net.

 

The reason everybody gives you different numbers is because it's different for everybody. We all have different deductions, depreciation etc. If you pay 20 to 25% of your net you'll probably be fine. If you owe some at the end it's not a big deal, if you paid too much you'll just Payless the first quarter next year.

To figure it out on gross is pointless as far as anyone else giving you an idea on the figure. After a year you may be able to do that individually after you see what your numbers are. I can do five short loads in a day and gross less or two to three long loads and gross more and net the same thing in a day due to fuel alone. For me gross is not a reliable way at all to track things.

 

For FICA, 15.3% up to 128,000, then 3.8% above that.

For federal income tax withholding, there is a very easy-to-follow tax table in Pub. 15.

For state income tax withholding, each state publishes their own tax table. They are easy to find and easy to use.

Generally, the disparity between gross and net grows larger as your income goes up, though much of that depends on your tax-exempt deductions. If you budget 25% then you should be okay.

 

Gross income and gross revenue are two very different things. As far as I can tell, he's talking about gross revenue which is very difficult to ballpark taxes with.

 

Good point. However, in his first post he wrote "This is for a single person with no wife or kids." I assumed he was talking about income since his withholdings would be different from a married person with dependents. But that was a stab in the dark, and you could be right about revenue.