My wife is a Hair stylist in Iowa. We are looking for the best software to track her income, taxes, and deductions. What software is best for figuring out how much taxes to pay when you are considerd an Independant Contractor?
Kiplinger's TaxCut, and TurboTax are the two more popular, reliable, tax software packages out there.
She should be setting aside roughly 30 to 50% of what she earns, to cover taxes. (variables would be if you are in a taxing state and city, and what your total household income is - which federal income tax bracket you are in)
15% of her profit goes to self-employment taxes. Then there's federal income tax, and then state and city if they apply.
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