Paid on 1099 - Good rule of thumb for tax escrow?

[rfs13]

Happy New Year!

MH was just informed that his company will not be taking out any state/federal taxes on his commission checks anymore (he is commission only). They will be deducting for healthcare and his 401(k) though.

What is a good rule of thumb to follow to ensure I'm putting enough in escrow every month? Is there some sort of chart I can find somewhere?
I'm assuming about 35% but I could be way off!

[ckinla]

We do 30%

[Deleted]

35% was a good number for us. Also consider meeting with an accountant who specializes in your H's industry soon to learn what you can write off now that he's being paid this way. We got to write off a lot of things we wouldn't have known about if we hadn't talked to a pro.

[Deleted]

I would do 35% to be safe. You will need to look into paying quarterly taxes as well.

[mrssavy42112]

I agree with consulting a pro. I was submitting 25% quarterly & ended up owing more. My tax preparer told me to send in 30% this year and that should cover it. I also have more deductions this year, so hopefully that will help.

[rfs13]

this whole thing freaks me out! Thanks for the advice ladies I'll give our accountant a call and see what she says.

[SJ]

We only put away 20% because we have tons of business expenses & deductions.

We pay enough in quarterly estimates to cover safe harbor though and we run all of this by our CPA periodically.