SOLUTION: Darrell owns a consulting business and has a estimated annual income of $63000.00. His social security tax is 12.4%, medicare is 2.9% and his estimated federal income tax rate is
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Question 182310: Darrell owns a consulting business and has a estimated annual income of $63000.00. His social security tax is 12.4%, medicare is 2.9% and his estimated federal income tax rate is 22%. How much quarterly estimated tax must Darrell send to the IRS for the first quater. Answer by nerdybill(7384) (Show Source):
You can put this solution on YOUR website! .
social security tax: .124(63000)
medicare: .029(63000)
income tax: .22(63000)
.
Therefore quarterly estimated tax:
(.124(63000)+.029(63000)+.22(63000))/4
(63000)(.124+.029+.22)/4
(63000)(0.373)/4
23499/4
$5874.75 (estimated quarterly tax)
