2007-04-08 10:55:18 · 10 answers · asked by sidney213 1 in Business & Finance ➔ Taxes ➔ United States
If you are self employed you will pay into Social Security as part of your 1040 tax return. In addition to the regular tax, self-employed people pay what is called Self-Employed tax, and it is calculated when you prepare your 1040 taxes for the year just ended. You can make estimated payments during the year to the IRS that will help lessen or eliminate the amount of taxes that you might owe at the end of the year. In addition to the Social Security tax, you will also be paying medicare tax as well.
2007-04-08 11:00:12 · answer #1 · answered by Anonymous · 0⤊ 5⤋
The self-employment tax that you calculate on schedule SE and file with your tax return is for social security.
2007-04-09 05:15:14 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
How much do you have to make before tax as self-employed in order to earn 1 social security credit? thank you.
2016-12-05 20:56:26 · answer #3 · answered by Hung 1 · 0⤊ 0⤋
When you file your tax return, forms 1040 with Schedule C and Schedule SE attached, you should be paying self-employment tax. That is the self-employed person's Social Security.
2007-04-08 10:57:27 · answer #4 · answered by crazydave 7 · 1⤊ 3⤋
Legally no, you're required by potential of regulation to pay into it. you will pay self-employment tax, it rather is social protection and medicare, while you're making over $4 hundred for the year as an self sufficient contractor.
2016-10-21 09:14:48 · answer #5 · answered by ? 4 · 0⤊ 0⤋
The 15.3% "Self-Employment" tax IS your payment for Social Security. Use schedule SE to compute this tax.
2007-04-08 13:13:35 · answer #6 · answered by STEVEN F 7 · 1⤊ 2⤋
You need to complete both the Schedule C or C ez to report your self employment income/ expenses and the Schedule SE to report and pay your self employment Tax (SS and Medicare tax) this information is transfered to the 1040
2007-04-08 10:58:41 · answer #7 · answered by Anonymous · 2⤊ 2⤋
Ouch, me too. Basically deduct your expenses and you will end up paying very little income tax. However, you will pay around 13.5% of your self-employment income in social security. It's on the 1040, no special forms required.
2007-04-08 11:00:31 · answer #8 · answered by Anonymous · 1⤊ 4⤋
When you file your tax return you will have to pay social security.
2007-04-08 10:57:12 · answer #9 · answered by the Boss 7 · 0⤊ 3⤋
You need to set aside money to be able to pay into that fund, ususally every quarter. You will need to consult a tax specialist if this is your first time having to do this. Good luck!
2007-04-08 10:57:47 · answer #10 · answered by Hot Coco Puff 7 · 0⤊ 5⤋