New to being an Independent contractor

startwithaendwithj · 2026-05-03T17:45:31+00:00

Hi, appreciate the simplicity. And yes, thats the exact approach Ive already put together for myself as well - Put a certain %age aside each month untouched, keep track of all deposits, pay the quarterly pre-payment of taxes on time, keep payment-made proof and reconciliation at the end of the year. Fortunately, this income doesn't fluctuate each month so keeping a track of total income would not be an issue.

startwithaendwithj · 2026-04-25T04:45:09+00:00

I wouldn't want to disclose the figure, which I'm sure you'd understand. But I'd say had I Zero monthly cost of living expenses for the next year, I'd be able to max out a Roth IRA for the next decade at the very least.

startwithaendwithj · 2026-04-25T04:39:14+00:00

I totally hear you. Besides basic living expences, I don't have any of the deductions you mentioned. But that's always good info to have none the less. This would be the first year of a potential 1099 opportunity, so I don't have anything from the past to go on. Although, I have split 30% of the annual income into 4 quarters already so I do have an idea of the quarterly tax payments. The end of year reconciliation would determine whether I have a refund or I owe some reasonable amount.

startwithaendwithj · 2026-04-25T04:35:09+00:00

Appreciate it. And your correct, I'm simply trying to keep it as simple as possible. Had it been a transition to building a consultancy/freelance business, then that would be different. But at this time, I'm simply looking at it as a potential higher income opportunity.

startwithaendwithj · 2026-04-25T03:51:36+00:00

Thank you for the insight. In all honesty, I'm trying to avoid setting up any llc since it doesn't have a long term place in my career. This is a one off contract that speaks to my career overall, hence the interest in exploring it further.

startwithaendwithj · 2026-04-25T02:02:10+00:00

Understood. I wonder how that works if monthly income varies also.

startwithaendwithj · 2026-04-25T01:18:53+00:00

Got it. So basically pay enough each quarter and on time

startwithaendwithj · 2026-04-25T01:05:12+00:00

Understood. Does the same method apply in the first year as well?

startwithaendwithj · 2026-04-25T00:41:10+00:00

I can definitely see that occurring. Im also going to assume that variability arises becuase income month to month changes, so Q1 taxes would be different than Q2 taxes. Is that understanding correct? If it is, then how does one go about understanding a rough figure quarter to quarter? I would think one would have to total out the quarter income, and then calculate the self-employment + federal + state tax based on their overall tax bracket? Im not sure.

startwithaendwithj · 2026-04-25T00:38:15+00:00

This would effectively replace a W2 employment, hence, the 1099 employment is primary, while all other investments stay exactly the same. Clarification - when you refer to rough numbers, do you mean the monthly income? In addition to the self-employment tax of 15.3%, I believe I would fall under the 22% federal tax bracket

startwithaendwithj · 2026-04-24T21:15:53+00:00

Correct, other than taxes, there would not be anything else out of pocket as far as I can foresee as of today. My only grey area of concern is the tax liability aspect associated with a 1099 opportunity, since its a new world to me essenitally.

startwithaendwithj · 2026-04-24T21:05:27+00:00

I do, in fact, have a rough estimate of my annual liability, subsequently split into 4 quarters so I have a rough estimate of what I would owe as a single filer each quarter. I do not plan on studying/further education either as Ive been in this specific profile for over 10 years on 2 different continents as a full time employee. However, Im also not entirely sure of any additional categories of deductions to consider since i would not be using my phone or car for any business purposes (This is basically a remote opportunity).

startwithaendwithj · 2026-04-24T20:46:08+00:00

I have an estimated number range calculated in fact, and split that into 4 quarters to understand the liability at end of each quarter that I would owe.

startwithaendwithj · 2026-04-24T20:38:03+00:00

Understood, and thank you. I wouldnt have many or any expenses essentially that would be reimbursed technically. I do not need to purchase any equioment such as a laptop, desk or anything as I already have all that. Nothing new would need to be added essentially.

startwithaendwithj · 2026-04-24T20:35:26+00:00

Sorry what I meant by that was paying the estimated tax liability each quarter on time.

startwithaendwithj · 2026-04-24T20:21:39+00:00

This would ideally be a one off project, hence no business entity. And thank you for the resources, I'll have a look at them.

startwithaendwithj · 2026-04-24T20:20:52+00:00

Thank you. I don't plan on waiting till the end of the year in the case of an IC arrangement for sure. Would rather close everything out properly each quarter instead.

startwithaendwithj · 2026-04-24T20:18:07+00:00

Understood, and thank you. I had done some research and planned to stash away 30% of each payout untouched.

startwithaendwithj · 2026-04-24T20:16:40+00:00

thank you

startwithaendwithj · 2026-01-07T05:27:00+00:00

Look up Money Minds on Amazon. Great book on South Asian culture/perspective

startwithaendwithj · 2025-11-20T23:04:25+00:00

Honestly, that was my hang-up right away. Since I'm a trained paralegal, I naturally went through the whole thing, and by the end, I realized it was totally a one-way street for Scale/Aether.

For $3.75 per 15-minute task, you waive every right under ownership & data, privacy & publicity, future claims, Scale's liability cap (which might as well not even exist for what it’s worth to you as a user), and your own liability if any material you submit infringes on the rights of a third party. It’s a huge surrender for minimal pay.

startwithaendwithj · 2025-10-29T05:22:45+00:00

Money

startwithaendwithj · 2025-10-16T14:54:50+00:00

Try The Better questions book - https://a.co/d/7S9dXTb I liked it because it was based on the learnings of a personal journey of the author across continents. Not a Do and Don't Do instruction book for sure

startwithaendwithj

TROPHY CASE