Confused about percentages for Federal and State (Calif)

Question

I'm still unclear about the percentages for Federal (15.3%, I believe) and then for state. I'm in California.

I just transitioned to Independent Contractor in late May (first paycheck dated June 2024). I've been setting aside 30% which I believe/hope is a conservative amount!

marctu · Answer

So the Self-Employment ("SE”) tax is 15.3% of 92.35% of net SE income.

The Federal income tax brackets are:

the tax brackets for 2024:

2024 Filing Status: Single, Married Filing Jointly (MFJ), and Qualifying Surviving Spouse (QSS)

Tax Rate	Single Taxable Income Range (2024)	MFJ and QSS Taxable Income Range (2024)
10%	Not over $11,600	Not over $23,200
12%	Over $11,600 but not over $47,150	Over $23,200 but not over $94,300
22%	Over $47,150 but not over $100,525	Over $94,300 but not over $201,050
24%	Over $100,525 but not over $191,950	Over $201,050 but not over $383,900
32%	Over $191,950 but not over $243,725	Over $383,900 but not over $487,450
35%	Over $243,725 but not over $609,350	Over $487,450 but not over $731,200
37%	Over $609,350	Over $731,200

2024 Filing Status: Head of Household (HOH) and Married Filing Separately (MFS)

Tax Rate	HOH Taxable Income Range (2024)	MFS Taxable Income Range (2024)
10%	Not over $16,550	Not over $11,600
12%	Over $16,550 but not over $63,100	Over $11,600 but not over $47,150
22%	Over $63,100 but not over $100,500	Over $47,150 but not over $100,525
24%	Over $100,500 but not over $191,950	Over $100,525 but not over $191,950
32%	Over $191,950 but not over $243,700	Over $191,950 but not over $243,725
35%	Over $243,700 but not over $609,350	Over $243,725 but not over $365,600
37%	Over $609,350	Over $365,600

These are the CA Tax brackets:

CA tax brackets for single filers

Tax rate	Taxable income bracket	Tax owed
1%	$0 to $10,412.	1% of taxable income.
2%	$10,413 to $24,684.	$104.12 plus 2% of the amount over $10,412.
4%	$24,685 to $38,959.	$389.56 plus 4% of the amount over $24,684.
6%	$38,960 to $54,081.	$960.56 plus 6% of the amount over $38,959.
8%	$54,082 to $68,350.	$1,867.88 plus 8% of the amount over $54,081.
9.3%	$68,351 to $349,137.	$3,009.40 plus 9.3% of the amount over $68,350.
10.3%	$349,138 to $418,961.	$29,122.59 plus 10.3% of the amount over $349,137.
11.3%	$418,962 to $698,271.	$36,314.46 plus 11.3% of the amount over $418,961.
12.3%	$698,272 or more.	$67,876.49 plus 12.3% of the amount over $698,271.
Source: California Franchise Tax Board.

CA tax brackets for single filers

Tax rate	Taxable income bracket	Tax owed
1%	$0 to $10,412.	1% of taxable income.
2%	$10,413 to $24,684.	$104.12 plus 2% of the amount over $10,412.
4%	$24,685 to $38,959.	$389.56 plus 4% of the amount over $24,684.
6%	$38,960 to $54,081.	$960.56 plus 6% of the amount over $38,959.
8%	$54,082 to $68,350.	$1,867.88 plus 8% of the amount over $54,081.
9.3%	$68,351 to $349,137.	$3,009.40 plus 9.3% of the amount over $68,350.
10.3%	$349,138 to $418,961.	$29,122.59 plus 10.3% of the amount over $349,137.
11.3%	$418,962 to $698,271.	$36,314.46 plus 11.3% of the amount over $418,961.
12.3%	$698,272 or more.	$67,876.49 plus 12.3% of the amount over $698,271.
Source: California Franchise Tax Board.

CA tax brackets for head of household

Tax rate	Taxable income bracket	Tax owed
1%	$0 to $20,839.	1% of taxable income.
2%	$20,840 to $49,371.	$208.39 plus 2% of the amount over $20,839.
4%	$49,372 to $63,644.	$779.03 plus 4% of the amount over $49,371.
6%	$63,645 to $78,765.	$1,349.95 plus 6% of the amount over $63,644.
8%	$78,766 to $93,037.	$2,257.21 plus 8% of the amount over $78,765.
9.3%	$93,038 to $474,824.	$3,398.97 plus 9.3% of the amount over $93,037.
10.3%	$474,825 to $569,790.	$38,905.16 plus 10.3% of the amount over $474,824.
11.3%	$569,791 to $949,649.	$48,686.66 plus 11.3% of the amount over $569,790.
12.3%	$949,650 or more.	$91,610.73 plus 12.3% of the amount over $949,649.
Source: California Franchise Tax Board.

CA tax brackets for married filing separately

Tax rate	Taxable income bracket	Tax owed
1%	$0 to $10,412.	1% of taxable income.
2%	$10,413 to $24,684.	$104.12 plus 2% of the amount over $10,412.
4%	$24,685 to $38,959.	$389.56 plus 4% of the amount over $24,684.
6%	$38,960 to $54,081.	$960.56 plus 6% of the amount over $38,959.
8%	$54,082 to $68,350.	$1,867.88 plus 8% of the amount over $54,081.
9.3%	$68,351 to $349,137.	$3,009.40 plus 9.3% of the amount over $68,350.
10.3%	$349,138 to $418,961.	$29,122.59 plus 10.3% of the amount over $349,137.
11.3%	$418,962 to $698,271.	$36,314.46 plus 11.3% of the amount over $418,961.
12.3%	$698,272 or more.	$67,876.49 plus 12.3% of the amount over $698,271.
Source: California Franchise Tax Board.

Note: If your taxable income was $100,000 or less, use the tax table on the California Franchise Tax Board's website to figure taxes owed instead.

So, 30% may or may not be enough. Since you transitioned in May you want to determine what your net SE income is through the end of the third quarter and make a payment to the IRS and the Franchise Tax Board ("FTB") for both the second quarter and the third quarter.

You can go to IRS Direct Pay to make a payment on or before September 16, 2024. You can also schedule the payment today to come out of your account on September 16, 2024. Pay the FTB here: https://www.ftb.ca.gov/pay/index.html

Thank you so much for your question @RaKaha74

Be well and safe!

Marc T.

Turbo Tax Expert

27 Years of Experience Helping Clients