Vanessa A
Employee Tax Expert

Retirement tax questions

If you had no taxes withheld, then it is not as likely that you will receive a refund, unless you have refundable credits that you qualify for such as the Earned Income Tax Credit or Child Tax Credit

Were you a household employee or were you self employed? Generally, unless you are offering services to multiple clients, and if the person you are working for controls how and when you work, you are an employee. If you are a household employee and earned more than $2,700 for tax year 2024 or more than $1,000 in any quarter of the year, then your employer is required to pay the employers share of the FICA taxes. They would also need to withhold your share of Medicare and Social Security Taxes from your wages and issue you a W-2 for every year that you are employed by them. 

If you were wrongly treated as an independent contractor when you were actually an employee, then you can file Form 8919 with your return, to pay your share of the social security and Medicare Taxes. To include form 8919 with your return, you will enter income from taking care of this individual under Miscellaneous income.  To do this select the following:

  1. Select Income
  2. Less common Income
  3. Miscellaneous Income, 1099-A, 1099-C, select Start
  4. Select Start Next to Other Income not already reported on a Form W-2 or Form 1099
  5. Select Yes to Did you receive any other wages
  6. Enter the amount you earned as a household employee
  7. Continue through the steps to answer the questions as they apply

Please note actual navigation may differ in your program depending on which version of TurboTax you are using

 

If you are self-employed, then you are required to pay the Self-Employment taxes.   You would use TurboTax Premier Online or TurboTax Home and Business to file a Schedule C reporting your income and expenses as part of your return.  If you did not pay SE Taxes in 2024, and if you plan to do this again in 2025, it may be a good idea to make  quarterly estimated payments to cover your SE taxes. Your SE tax which is 15.3% of your income is your Medicare and Social Security tax that you pay as an independent contractor or sole proprietor. When you are an employee, then your SS and Medicare taxes are half of the 15.3% because your employer would be paying the other half, but since you don't have an employer to pay the other half, you have to pay the entire amount.  If you are self-employed and earned more than $400, you MUST file a tax return. 

 

You do get a 50% credit for paying this, but the amount on line 23 cannot be reduced by credits for your dependents. 

 

 

Self Employment Taxes

 

The Self Employment Tax
 

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