contract pilots taxes?

mense

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Nov 27, 2001
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Was wondering what is the tax hit on contract work at the end of the year? I heard you pay about 48% of what you make. Is this correct?
Thanks
 

CesnaCaptn

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If you were 1099ed then it is up to you to claim your expenses for the trip. That will help a little.
 

skyride56

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Dec 20, 2001
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Depending on how much $ you plan on making as a contract employee you should make quarterly estimated payments to the IRS if your employer is going to send you a 1099 . The amount of the payments should be around 12-35 percent of what you earned depending on what tax bracket you will be in. Don't forget you still have to pay social security and medicare taxes. These two taxes are combined and calles the self-employee tax or SE Tax. For more info on the SE Tax go to: http://www.irs.gov/pub/irs-pdf/p533.pdf
Keep track of all expenses, uniforn costs (purchase & cleaning), cable bill (weather channel is deductible,,,no kidd'n), aviation books/magazines, milage on your vehicle,,,,etc. If you have a second job make sure you are claiming zero exemptions on your W-4 (the IRS form everyone fills out before they're added to a company's payroll), this will help offset your 2002 tax.

For your question about how much $ the IRS will be expecting from you refer to this: http://www.irs.gov/pub/irs-pdf/f1040e02.pdf

For the 2002 tax rate tables go to: http://www.taxplanet.com/newtaxlaws/newlaws2002/rates02/rates02.html
A good site for any other tax questions is www.taxplanet.com

good luck
 

Dep676

My Glock is bigger!!!!!
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Nov 25, 2001
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I only made about 7500.00 last year doing contract work and I got a refund both from state and federal. I didn't have much deductions just some mileage. So keep track of your mileage for getting to the airport. Every little bit helps.
 

ksu_aviator

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Dec 1, 2001
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I lived in TX for 2001 and followed skyrides advice. I broke even at the end of the year.
 
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