Re: My spouse has W2, my work allows me to select ...
Level 15

Retirement tax questions


@maheshr3 wrote:

In this case how and when does the 1099 employee pay the taxes and social security Medicare etx?


If you have a net profit from your self-employment then you will owe Self-Employment taxes reported on Schedule SE.  You pay 15.3% SE Taxes on the net profit, both the employer and employee portions of Social Security and Medicare taxes with the SE taxes.  However 50% of those taxes are entered on your tax return as an Adjustment to Income thereby reducing your Adjusted Gross Income and your taxable income after either the Standard or Itemized Deduction.

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