Where does your dollar go?
Every dollar you earn gets carved up before it reaches your pocket. Toggle who you are and where you live. Watch the cuts move.
$1.00
one dollar of earned income
FICA
$0.14
As a freelancer you pay both halves yourself: Social Security + Medicare on 92.35% of net earnings.
Federal income tax
$0.10
Estimated at the 10% bracket. Your real bracket depends on your full annual income, not this paycheck alone.
State income tax
$0.05
Illinois flat 4.95%. No surcharge above any bracket.
Take-home
$0.71
What's left after the three above. This is the figure to plan against.