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Retirement tax questions
Are you getting paid with a 1099Misc or the new 1099NEC instead of a W2? So they are not taking any taxes out for you?
1099Misc or 1099NEC is self employment income. You can deduct expenses against it. 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. So you get social security credit for it when you retire.
‎November 19, 2020
6:47 PM