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Paying Employee/Employer Social Security tax with turbotax??

I'm trying to file my daughter's taxes for free via turbotax.  She is a Medical Transcriptionist and is considered to be a business owner rather than just an employee.  This means that she has to pay 100% of the Social Security taxes but turbo tax is only having her pay 50% as an employee.  She received a 1099-NEC which I have indicated in the filing so far.  How do I get the 100% tax paid while using turbo tax?  My daughter is a single parent with two young children and has a very low income.  So far, with turbo tax she's getting a sizeable refund but would rather pay the whole tax debt now rather than have to cough up more money later on when she can't afford it. 

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2 Replies
KrisD15
Expert Alumni

Paying Employee/Employer Social Security tax with turbotax??

If the tax return is generating a Schedule C, and it should, she will pay both sides of the tax, but then she  (AND ALL SELF-EMPLOYED PERSONS) gets a credit for half the amount as a deduction. 

 

This is because a business owner gets to claim the half they pay as an expense. So she pays both parts, but gets the business portion as a deduction. 

 

The ENTIRE amount is credited to her Social Security Account. 

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Paying Employee/Employer Social Security tax with turbotax??

I've worried about that deduction for a couple of sleepless nights.  Now you've provided an understandable explanation that has eluded me for awhile.  IRS sure didn't explain it like that.  Thank you so much.

 

Notlsec

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