AmyC
Expert Alumni

Get your taxes done using TurboTax

You must be self-employed and need to pay your Medicare and Social Security tax. About $2200 on $14600 of profit matches up.

 

Self-Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self-employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  This goes on your social security for credit - it could help when you retire or if you become disabled.

 

You should be making quarterly payments, You want to use Publication 505, Tax Withholding and Estimated Tax to determine your payments. The IRS expects payments in the same quarter you make money. If you owe more than $1,000 you can be penalized. 

 

Reference: What is the self-employment tax?

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"