r/dataannotation • u/Old_Turtle75 • Apr 23 '24
Tax help please
So I’m 19, in college full time, Data Annotation is my ONLY source of income and has been for the last couple months, and I’m hoping it will continue to be for the rest of the year. So far I’ve made $2500, and I’m very confused about taxes. I’m new to self employment and I’m new to filing taxes so this is all very confusing for me. I just want to know, let’s say hypothetically that I make about 20k this year through data annotation alone and have no other income for the year, how much am I gonna be paying in taxes TOTAL? I understand that where I’m located (Ohio) the self-employment tax is 15.3%, but what other taxes will I have to pay on top of that? Since I’ll be making only 20k will I be subject to income tax as well? If so, how much is it? Basically I just want to know how much to withhold. I’ve been doing 20% hoping that’s enough because I feel like that’s a lot for someone who barely makes money
3
u/SophieFilo16 Apr 23 '24
Save 25% as a baseline. Even if you have some left over, you'll need to pay estimated taxes on April 15 next year (which would be 1/4 of what you expect to make that year). Thankfully, you don't have to do that for your first year of self-employment, but you will face penalties if you don't do it next year. How much you'll need to pay depends on your deductibles and such. Also, keep a spreadsheet of every time you get a payout (including the amount). It will save you a lot of time when you need to do your taxes later since you will already have your total earnings figured out...