sole proprietor payments of SS and Medicare taxes

[ksal21]

Hi.  I am a new sole proprietor and have never paid SS and Medicare taxes directly.  Does TT Home & Business calculate and submit SS and Medicare payments to the Social Security Administration, or do I have to do that myself?  My income was from December 2021.  Thx!

[Vanessa A]

A little of both.  Your Medicare and SS taxes are your self-employment taxes.  TurboTax will calculate your total for Self-Employment taxes at the end of the year when you file your annual return.  However, you are supposed to make the payments quarterly.  You can use the estimator on TurboTax, of you can use QuickBooks Self-employed to track your income and expenses.  This will also tell you  how much you should actually pay each quarter which will keep you from having an underpayment penalty at the end of the year or having to pay a large lump sum at the end of the year. 

[xmasbaby0 · Accepted solution]

Yes----when you prepare your return with your self-employment income your SS and Medicare are calculated for you and will be paid to SS when your tax return has been filed and accepted.   You do not mail a separate payment for that.  It is part of your tax due.

[ksal21]

Thanks, Vanessa!

[ksal21]

Thanks Christmas baby!  Interesting name.  😉

[leeloo]

Social secuirty and Mediare taxes are calculated at 15.3% of your profit. You also pay federal income tax at your tax rate.