How much do I owe in taxes on this income?
Is a question we hear all the time - which is why we created withholding suggestions! Every transaction that is categorized as 1099 income will have a withholding suggestion, telling you the right amount to withhold from that paycheck to completely cover the taxes owed. You'll never be left wondering what you owe and what you can keep.
Why do the suggestions differ from my overall tax liability?
Your withholding suggestions do not include the deduction from business expenses, so it is very possible that the sum of your withholding suggestions will be larger from your total tax liability. The good news is that
- Your overall tax liability will always be less than the sum of your withholding suggestions.
- If you withhold more than you owe in taxes, we'll return your money to you in the form of a tax refund!
Can I change the amount of the withholding suggestion, or adjust my tax rate?
We currently don't support the ability to change the withholding suggestion or tax rate - it's a good idea to go with our suggestions, as they are based upon your income bracket, filing status and outstanding tax payments. Also, if we ever withhold too much, we'll send your money back to you in the form of a tax refund!