Since he also has W2 income.
If you also have W2 income, you have to break out the Social Security and Medicare taxes. Only the Social Security part maxes out. Turbo Tax does it automatically for you.
The SE tax includes what you already paid in from your W2s so your schedule SE tax will only be the difference up to the max amount of $8,537.40 for social security. The max income for social security for 2020 is $137,700 between W2 wages and the schedule C Net Profit.
Medicare is 2.9% (both er & ee parts) of all wages & 92.35% Schedule C Net Profit - no max.
You are paying 15.3% for……
SS for employer 6.2% (up to 137,700 wages & profit)
SS for employee 6.2% (up to 137,700 wages & profit)
Medicare for employer 1.45% (on all wages & profit, no max)
Medicare for employee 1.45% (on all wages & profit, no max)
He might be able to just increase his W2 withholding to cover the extra self employment tax.
