I can do your Federal and State estimated tax payments for $25 per quarter. This includes a reference sheet which shows how the payment amount was calculated. You should get coupons for the proper amount to pay from your tax preparer when they do your 2010 return. Ask them to include them if they don't because they should.

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From what I've seen, you being in the Federal 15% bracket, and your self-employment pushing your effective tax rate (the amount you actually pay) being about 20%, your withholding of 28% is about right. I do not charge additional to file the estimated taxes for your state and federal, because all of the information to file the estimated payments helps with the actual filing. You can sign-up for me to file your state and federal returns for 2010, and the estimated vouchers you'll need will be included in my service. Basically, it's getting the service you're requesting, plus prepaying for your April 2011 filings (or earlier in the year if we really have all of the information). I will need more information, because items of deduction or addition back to income such as how much was already withheld from your unemployment compensation, any IRA contributions, state income tax refunds received, and last year's tax filings will be required. I always perform a review of last year's return filed by someone else as a free service in order to see if we can get a higher return for you. If this was what you're looking for, please leave a good review (dummy proof is the best) and contact me as soon as possible!

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Thank you so much for the clarification! I guessed as much. I'm currently deducting at least 28% per pay check. How much would it cost if you prepared my Federal and State (CA) estimated tax payments? I know that the 3rd Quarter (September) will be due soon. So far I've collected: $4,406.96 in wages. I get paid $15 per hour for a 40 hrs work week. My current situation is that I'm single with no other dependents.

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In general for contracting work you want to at least deduct your FICA Social Security and Medicare tax. The tax is 15.3% of gross earning payments, although you will will an adjustment to taxable income for 50% of the tax on page one of your Form 1040 on your Federal tax return. You should also deduct withholding for federal and state taxes as well, but the percentage varies with income. You can look up the tax rates at the IRS web site or I can determine if you are in the 10%, 15%, or 25% bracket based on how much total income you expect to earn by the end of the year. You should also withhold state taxes based on the rate in your state. Remember you will get allowances for you and any other family members and for your filing status so your total taxable income will be perhaps $10,000 less than your total income. But you want to make estimated tax payments and not wait until April 15th to pay all the taxes. In summary, you want to withhold at least 25-30% of your independent contractor payments and pay in federal and state estimated tax payments so that you are not charged penalties and interest on unpaid tax and also be in the position of having to pay all of the taxes on April 15th.

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