Paying Employee/Employer Social Security tax with turbotax??

Notslec · ‎February 7, 2021

I'm trying to file my daughter's taxes for free via turbotax. She is a Medical Transcriptionist and is considered to be a business owner rather than just an employee. This means that she has to pay 100% of the Social Security taxes but turbo tax is only having her pay 50% as an employee. She received a 1099-NEC which I have indicated in the filing so far. How do I get the 100% tax paid while using turbo tax? My daughter is a single parent with two young children and has a very low income. So far, with turbo tax she's getting a sizeable refund but would rather pay the whole tax debt now rather than have to cough up more money later on when she can't afford it.

KrisD15 · ‎February 7, 2021

If the tax return is generating a Schedule C, and it should, she will pay both sides of the tax, but then she (AND ALL SELF-EMPLOYED PERSONS) gets a credit for half the amount as a deduction.

This is because a business owner gets to claim the half they pay as an expense. So she pays both parts, but gets the business portion as a deduction.

The ENTIRE amount is credited to her Social Security Account.

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Notslec · ‎February 11, 2021

I've worried about that deduction for a couple of sleepless nights. Now you've provided an understandable explanation that has eluded me for awhile. IRS sure didn't explain it like that. Thank you so much.

Notlsec

Paying Employee/Employer Social Security tax with turbotax??

Business & farm

Business & farm