What % of my income for taxes?

June --

I work and live in San Diego CA, I am a mortgage loan processor and just started as an independent processor. I get paid per loan closed. No hourly pay. I get $400 for each loan I close and was promised at least 10 loans per month. So if I make about $2000 every other week, how much should I take from that check to put aside to pay for my Federal State Tax, Social Security taxes and possibly self employment tax?

I will have several deductions at the end of the year for working such as my transportation, office supplies, cell phone, use a room from home as my office etc.

I thought I should put aside at least 25%, am I thinking right?

Look forward to your answer.

Thank you, Rose
San Diego, CA



Hello Rose,

You need to put aside between 30% and 40%. Take a look at this column on my website for an explanation Taxes: Which ones and how much do I pay?.

-- June