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Returning Member
posted Jan 28, 2021 2:32:33 PM

Self Employed and CONFUSED!

I pay estimated tax for federal/state...should I be doing something with self employment tax or do I handle that solely on my taxes?

I am a single member LLC. 

 

I've researched and only succeeded in confusing myself even more! Please help! 

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2 Replies
Level 15
Jan 28, 2021 8:22:45 PM

Yes, you'll need to be calculating your self-employment tax to be submitted along with your quarterly estimated tax payments.  

 

The IRS publication 2020 Form 1040-ES will give you all the info you need.  You'll see a worksheet on page 8 for calculating your estimated taxes.  But before that, on page 6, see the separate worksheet for self-employment taxes.  Once you've completed these worksheets, you should have the total you'll need to submit quarterly.  I'm linking the publication below.

 

2020 Form 1040-ES (irs.gov)

Expert Alumni
Jan 28, 2021 8:28:42 PM

You will pay the self-employment tax on your personal tax return since your are a single member LLC. You will report your business income and expenses on Schedule C and the net income will appear on Schedule SE , which is where your self-employment tax is reported and then added to your personal income tax. 

 

There is a section in TurboTax where you can determine that amount of your estimated taxes, to include the self-employment tax as follows:

  1. Federal
  2. Other tax forms
  3. Form W-4 and estimated taxes

[Edit 1/29/21 1:20 PM EST]

@Sracer986