- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Is it necessary to pay self employment tax and medicare for driving part time for auto dealership. we make dealer trade and auction purchased cars pickups?
Topics:
June 4, 2019
2:50 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
It depends on how you're paid.
If you're paid as an employee -- for which you should receive a Form W-2 -- then your Social Security and Medicare withholding should have been taken out of your pay and reflected on the W-2.
If you received a Form 1099-MISC reflecting your earnings -- or received no IRS form at all -- you're probably an independent contractor and will need to pay self-employment tax if your net self-employment earnings are over $400.
Please see the TurboTax FAQs "Am I considered self-employed?" and "Does a 1099-MISC mean I'm self-employed?" for more information.
June 4, 2019
2:50 PM