Tax Law (Questions About Taxes)/Contractor taxes



My name is Tyler and I spoke with you earlier. I currently  work for Global Integrated Security as a PSD paramedic.. I will not be in the country for 330 days, so I will not be able to get the tax break. My question is, if I will make roughly $130,000 by the end of next year how much do you think I will end up owing in taxes ? Keep in mind I have no home mortgage at this time and my fiancÚ currently lives with her dad while we try to save for a home. I know you can't give me an exact answer, but a rough estimate with all the loopholes would be great. I am new to contract work and would appreciate all the help I can get. I was told by anther CPA That worst case I would have to pay around $40,000. I do not have a lot of write-offs and I'm just concerned about having to pay $40,000. Ian currently saving for a home and if I have to pay $40,000 in taxes it does not make it even worth it to be over here. Thank you for your assistance with this process. If you could please recommend someone that I could do my taxes through that is knowledgeable about overseas contract work that would be greatly appreciated. On one more note another CPA advise me to pay quarterly estimated tax payments to avoid penalties and interest, is that a good idea?

- Tyler

Well.  It is now almost December. So quarterly estimates don't mean much now.   Maybe for next year

Your marital status (assume single) and dependents (zero?) play into your tax rate.   Also it sounds like you are on standard deduction.  Depend what you paid in state tax and prop tax before going abroad.  And if you pay estim state tax before year end.  

Not completely simple and not knowing your state.  It sound alike 25% and 5% for state is not unrealistic.  130 x 30%. Is about $35k.   So.  Your 40k estimate is not too far from the mark

What else can I do for you?.  

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

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