Posted by: syanjali May 5, 2010
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Sorry the take home amount will be different: , You have to deduct SS tax 6% and medicare tax 1.34% off which will be another 8780 still you have about 84000 vs 78959.
I just put the dollar amount on tax-act.com and got the number.
Conservatively I put 5000 as your independent contractor expenses, If the expenses are less than this amount then your tax liability will go up and take home will be down and vise verse.
But you can not compare your independent work with an employee, one has more freedom than the others.
I do not think you will be comparing the dollar amount only.
I just put the dollar amount on tax-act.com and got the number.
Conservatively I put 5000 as your independent contractor expenses, If the expenses are less than this amount then your tax liability will go up and take home will be down and vise verse.
But you can not compare your independent work with an employee, one has more freedom than the others.
I do not think you will be comparing the dollar amount only.