Being paid in cash; how should I save up for my 2008 taxes (IL)?

I have a new job that I%26#039;m starting today, and I%26#039;m being paid in cash. How much of the money should I put away to pay my taxes next year if I live in Illinois?

Being paid in cash; how should I save up for my 2008 taxes (IL)?postage rate

Many states require Quarterly filing if self employed and no withholding taken out.You pay every three months based on your income for those months.The paperwork for the quarterly filing will have your tax rate in the forms,usually a percentage of gross adjusted income.You need to file it because your employer has to report it as business expenses to the state and IRS;and if they find out you didn%26#039;t report it,there are penalties involved.Make sure you keep a record of each %26quot;payday%26quot; for your records in case you are audited and to substitute for your W-2 forms at tax time.

Being paid in cash; how should I save up for my 2008 taxes (IL)? loan

Estimate your years income.

You must be considered a sub-contractor and will receive a 1099.

Figure the avg deductions that you%26#039;re sure of. Yourself, any dependents, morgtage interest, etc.

Deduct that from gross.

Save about 25% of the net amount.

You%26#039;ll have tax, plus Self Employment tax, (in lieu of SS and Medicare).

At the end of the year, you can make any adjustments, up or down.

You are required to send estimated taxes quarterly.

Divide your est yearly taxes and send 1/4 by due dates.

The actual day will have to be verified for each year, accounting for weekends and holidays.

Estimated Due dates.

First quarter: April 15

Second quarter: June 15

Third quarter: Sept 15

Fourth quarter: Jan. 15|||For Federal Taxes, You will pay 15.3% (This is your Federal tax and social security and medicare, combined) of .9235% of your NET amount.This means that out of every $100.00, then $92.53 will be taxed at 15.3% (= $14.16)

I could not find any specific info for your state taxes, but to be safe, put away whatever your state tax rate is, (Example- if it%26#039;s 6%, then put away $6.00 out of every $100.00 that you earn.

Also, if you are in sales, and have to drive your own vehicle, keep an accurate log of your mileage, and any other expenses that you will incur. This will be very useful for your taxes next year.