Posted on Jan 11, 2016 at 9:00 PM
How much should I set aside for taxes?
Hi Russ, One question I have as I try to figure out my net income, what percentage of my gross should I be setting aside for income taxes each month? Is 20% enough? Thanks, TanyaMy initial response: The standard rule the IRS uses is you should set aside 100% of last year's tax, or 90% of this year's tax estimate, whichever is less. Basically, if you are doing better this year, then send in what you owed last year. If you are doing worse this year, then send in what you think you'll owe this year.