- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Why is there self employment tax , we are on social sec. ? Thanks, Ed
isn't it just on 15% of income?
Topics:
June 5, 2019
12:02 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Unfortunately, self-employment tax is charged on all income from self-employment (income reported on Form 1099-MISC in box 7 is considered an item of self-employment income and net income from a trade or business) regardless of whether the person who earned the income is also a recipient of social security.
Self-employment tax is 15.3% of the income from self-employment. This is the amount on line 12 of Form 1040.
June 5, 2019
12:02 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
If you have self-employment income, then you pay self-employment of 15.3% on 92.3% of your self-employment income. It does not matter at all that you get social security. Any self-employment income is subject to self-employment tax from birth to death and no other factors matter at all.
June 5, 2019
12:02 PM