I believe I'm doing everything right. So I just want to double check.
I chase sign up bonuses from banks and credit cards and get 1099INT and DIV from Fidelity
I am selfemployed so I pay 30% in estimated tax payments from what I make per quarter.
I saw a post of this guy owing a lot to the IRS but that doesn't apply to me
So, as long as I'm doing estimated tax payments, tracking expenses from the business while separating personal and business expenses. Same with business and personal sign up bonuses I receive (though it's sole propietorship) then I should be good or is there anything I should be aware?
I might get a 1099-B for like $300 profit but that's it and a ROTH IRA that I haven't funded in a while
Thanks for the insight!
I'm playing around with finances, credit cards, personal and business loans. So what should I expect in tax season?
byu/AndroFeth intax
Posted by AndroFeth
2 Comments
Your interest & dividends from your credit card/bank sign up/etc. rewards will be taxed as ordinary income. You can look at your most recent return and at a table of the income tax brackets to see what rate that’s likely to be. You should add that much to your estimated payments – if you received a $300 bonus for opening a bank account this month, and you’re in the 24% bracket, then you should pay an extra $72 with your next estimated payment.
—-
Paying 30% of your self employment income may not be accurate. Take your self employment income, and subtract your expenses – pay about 14% of this towards self-employment tax. Then subtract half of that 14%, and subtract another 20% – the result is subject to ordinary income tax following the normal brackets.
Oh