how do i pay social security tax and medicare tax?

Question

i was with a employer that took out no taxes out of my income with them (700$) now its tax season aproching, and i was wondering, how much do i need to pay, and what forms do i need to pay social security and medicare tax (will a 1040 due?)

i did have other income for the year, from employers and social security that totaled aprox 12000

is there a diffrent form than the 1040 or 1040ez that you need to report this on? or can you tack it on as wages and pay the tax on that form?

Answer 1

You'll fill out a 1040 schedule SE in addition to your 1040 to calculate your self-employment tax due (social security and medicare). The amount will be 15.3% of your net earnings, after you subtract any expenses from your income. The total from the SE will then be transferred to your 1040 and added to your total tax.

Answer 2

Income tax is charged on a business's income less allowable expenses. This would be true for any business type; i.e., sole proprietor, corporation, partnership, trust, etc. In addition, if the business is operated as a sole proprietorship, you would be required to pay Self-employment Tax on the bottom line. Some states, e.g., Washington, assess a tax on the revenue of the business. Most states have business income taxes that shadow the federal income taxes. The other taxes you've mentioned are also (at least in part) also incurred by businesses, but are related to the employment of personnel. Employees sometimes pay part of the workers' comp premium or unemployment insurance and half of the Social Security and Medicare taxes. Employers pay the other half of the Social Security and Medicare taxes as well as most of the workers comp, unemployment taxes (both federal and state,) etc.

Answer 3

You should include the income on your tax return. The $700 will also be shown on form 1040, schedule SE. This is the schedule use use to compute and pay the social security and medicare tax on that income.

Answer 4

If this is the first year it has happened to you, you will be able to file and pay your social security when you file you income taxes. I do not believe that you will have any penalty unless you owed them money at tax time last year too.

If you were not withheld on, you would be considered an independent contractor and should also be able to deduct some expenses you otherwise would not, see a tax professional to be sure.

Just make sure you file AND pay on time. The IRS does not screw around with non-filing and non-payment. Even if you can't pay, FILE. The penalty for not filing on time can be up to 100% of the tax you owe, the penalties for setting up a payment plan are much, much less.

Good luck to you!

Answer 5

you pay through withholding from your wages is you work for someone or paying self employment tax(if you net income $400 and more). Self employment tax is paid when you file your tax return

Answer 6

Social Security Disability Benefits : http://DisabilityHelp.siopu.com/?CYt

Answer 7

Did your employer give you a 1099 ? Take this to an accountant or tax preparation company and they will assist you.