Things You'll Need:
- Paper, pencil or pen, calculator, and internet access.
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Step 1
Figure out how much you anticipate to make for the coming year. For example if you work from home as a customer service operator and you know that you make $800 a month but you want to be making $1000 a month in the next year then figure $12,000 for the year. This doesn't have to be exact. A rounded figure of what you think you will make will do fine. Remember to aim higher so that if you make more you have your taxes covered.
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Step 2
After figuring the amount you hope to make for the year write it down. Now go to http://www.irs.gov/pub/irs-pdf/i1040tt.pdf and find the amount that you wrote down. Follow the columns to match your situation. If you are married filing jointly then look to that column and if you are single look to that column. This is the amount you will be paying in taxes for the next year. For example if you feel you will only make $4000 for the upcoming year and you are single then you will be expected to pay $403 for the year according to the chart.
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Step 3
Simply plan accordingly by dividing the amount that the chart gives you by 12 months. Take that amount each month and put it into savings. Do not figure in deductions, rebates, or any other exempt items such as expenses or rental fees at this time. When you go to pay your taxes for the upcoming tax year take your receipts for exemptions, children, expenses, etc to your tax professional. They will deduct them at that time.
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Step 4
Go to pay your taxes for the upcoming tax year. Take your 1099's from the companies you worked for along with any payment checks that may not show on a 1099 form. Take your receipts for exemptions, children, expenses, etc to your tax professional. They will deduct them at that time.
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Step 5
When your tax professional figures in your earned income minus your deductions and expenses they will give you the amount that you owe. Take that amount out of your savings account that you have been keeping for the year. The amount that is left is your "refund".
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Step 6
Keep all records and documents from your tax professional and repeat the steps for the next year.
