I am retired and still work part time. I am self employed and do residential cleaning. I only make approximately $5,000. a year. Do I still have to pay S E tax? ( my retirement s.s. is only $9,800.)
2007-02-06 21:39:09 · 3 answers · asked by William B 1 in Business & Finance ➔ Taxes ➔ United States
Yes, you always have to pay SE taxes regardless of your age or retirement status. The upside to this is that by claiming the income and paying the tax, your lifetime earnings will increase and so will your SS payments. It might not be a lot, but everything helps.
2007-02-06 22:34:02 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
positioned aside about 10% and also you need to be superb. the first tax to judge is interior of reach organisation tax (city, then State). those are typically fixed costs and fewer than one hundred each and every year (no longer sales or use tax, that is a percentasge). Federal tax will be annual the first year (form 1040, agenda C). if you're making a lot, the IRS will anticipate you to pay quarterly after the first year. A tax adviser will be extremely truly worth the $2 hundred or $three hundred you may pay to have your returns carried out properly, plus get carry of sturdy organisation recommend.
2016-11-25 22:37:09 · answer #2 · answered by ? 4 · 0⤊ 0⤋
As long as your self employment income exceeds $400, you are subject to self employment tax.
2007-02-07 09:42:17 · answer #3 · answered by jseah114 6 · 0⤊ 0⤋