Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Aug 28, 2024 9:28:19 AM

SELF EMPLOYED SOCIAL SECURITY / MEDICARE DEPOSIT

HOW DOES A SELF EMPLOYED INDIVIDUAL MAKE SOCIAL SECURITY AND MEDICARE DEPOSITS FROM INCOME?

1 3 2304
3 Replies
Level 15
Aug 28, 2024 9:31:13 AM
Level 15
Aug 28, 2024 9:32:32 AM

If you have net income from Self Employment of $400 or more then you will owe Self Employment taxes.  The SE taxes owed are both the employee and employer FICA taxes (Social Security and Medicare).  The taxes paid are 15.3% of the net income.

Employee Tax Expert
Aug 30, 2024 12:08:58 PM

So, I think your question was when and where to make the estimated tax payments.   The dates to make the payments are April 15, June 15, and September 15, and January 15 of the following year, unless the date falls on a weekend or holiday.  In that case the payment is due on the next business day.  So this year the third quarter payment is due on September 16, 2024. 

 

If you are self-employed, you will need to report your net earnings to Social Security and the Internal Revenue Service (IRS). Net earnings for Social Security are your gross earnings from your trade or business, minus all of your allowable business deductions and depreciation.

 

Generally, the amount subject to self-employment tax is 92.35% of your net earnings from self-employment. You calculate net earnings by subtracting ordinary and necessary trade or business expenses from the gross income you derived from your trade or business. You can be liable for paying self-employment tax even if you currently receive Social Security benefits.

 

You can use this calculator to track your expenses:  Track self-employed expenses year-round with TurboTax Expense Monitor 

 

You can use this Turbo Tax calculator:  W-4 Calculator 

 

You can also use the IRS calculator:  Tax Withholding Estimator 

 

I would strongly encourage you to make estimated payments through the IRS.  Go here:  https://www.irs.gov/payments 

 

You save the cost of postage plus no one can claim that it got "lost in the mail".  If you do mail the 1040-ES or are now creating a 1040-ES go here for the mailing addresses:  Where to file addresses for taxpayers and tax professionals filing Form 1040-ES  The mailing addresses are based upon the state you live in.  

 

 

Be well and safe!

 

Marc T.

 

Turbo Tax Expert

27 Years of Experience Helping Clients