Total To Take Out For Taxes?
Stuart wants to be careful about one of his jobs, because all he gets is a 1099 form and he needs to take out the taxes. How much should he hold?
QUESTION: Stuart and his wife are both working 3 jobs. One of his jobs doesn’t take the taxes out and gives him a 1099 form. How much of that should he save toward taxes?
ANSWER: Take a fourth out. That may be a little too much, but better too much than too little when it comes to takes. Open a separate savings account and throw that money in there. You could also do quarterly estimates as well.