IRS tax professionals?

Maryland and IRS tax for online business?

• I live in maryland and would like making an online shop (commissoning costume) as part time to help pay for school. I know i have to pay 15.3% to irs for SE tax but: 1. what is the income tax i have to pay to the irs if i make about 12,000$ a year (net income)? 2. What the percent or amount of tax do i pay to the state of Maryland for the net income in #1? 3. Since it is part time, do i need a business license/permit/tader license or other legal document to sell online or at all? 4. When i pay estimate tax to the IRS, does the amount payed to the IRS cover both IRS and Maryland tax owed or do i have to pay sepereatly to IRS and MAryland? 5. What percent i shoud withhold to pay the IRS and Maryland tax? (15.3% SE tax + Income tax % + maryland tax % = ?) I don't have an accountant now since i'm plannign to only have a part time shop but if i must i will find one. If i need one, how much will they chrage for questioning service or service in general for me?

• Answer:

  1. This depends on your TOTAL income and filing status. Get the instructions to form 1040-ES to calculate this. If you are single, no dependents and this is your only income, you are in the 10% tax bracket. Tax on $12000 is $305 after exemptions and standard deduction. 2. Maryland has a nice estimated tax calculator at https://interactive.marylandtaxes.com/percentage/502.asp 3. see link below 4. Separately 5. see above You also need to charge sales tax on sales to Maryland and New York.