Bonsai Tax is built just for self-employed workers.
It helps tens of thousands of people across the country save an average of $5,600 on their taxes.
This handy book will guide through best practices to follow when calculating your freelance taxes.
Indiana self employment tax is 15.3%, with 12.4% dedicated to social security, old-age, survivors, and disability insurance, and 2.9% for Medicare or hospital insurance.
Indiana self employment tax is calculated in two parts. For 2020, the first $137,700 of your net earnings is subject to the Social Security part of Indiana self employment tax. The 2.9% Medicare portion is applied to all your combined net earnings. If you have a family business or are in partnership with your spouse, the Indiana self employment tax requirements may vary.
With no employer to withhold taxes, you need to look after tax payment requirements on your own by filing quarterly estimated tax payments. Payments should be made on:
Payments can be made electronically with Form 1040-ES, Estimated Tax for Individuals. You will need your prior year’s tax return or you’ll have to estimate the amount of income you expect to earn for the year.