IF I AM A 1099 EMPLOYEE WITHOUT AN LLC HOW SHOULD I MAKE THE SOCIAL SECURITY/MEDICARE PAYMENTS?

[smazda]

I AM 1099 AND MAKE QUARTERLY TAX PAYMENTS TOWARDS 1040, BOTH FEDERAL AND STATE. WILL I RECEIVE CREDIT TOWARDS SOCIAL SECURITY AND MEDICARE BENEFITS OR DO I HAVE TO MAKE SEPERATE DEPOSITS FOR MEDICARE AND SOCIAL SECURITY?

[xmasbaby0]

If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare,  you will need to use online Premium software or any version of the CD/download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_U...

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

calculator-2021-2022-50907/

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

[SteamTrain]

but in the details.....Your quarterly estimated payments will be used against both your SS/Medicare and your personal income taxes.

The exact $$ amounts that actually get sent to SS/Medicare for SS credits (i.e. also credited for having paid into SS/Medicare), that will be determined when you fill out your yearly tax return Including your net income from your 1099-NEC or cash income from working as a Self-employed individual, and then file those details in that tax return, for whichever full-year's taxes you are preparing at tax time. (Keep detailed records of your work and expenses as a 1099-NEC employee)

__________________________

The current SS web page states the following for the minimum per-year work earnings needed:

In 2024, you earn 1 Social Security and Medicare credit for every $1,730 in covered earnings each year. You must earn $6,920 to get the maximum 4 credits for the year. During your lifetime, you might earn more credits than the minimum number you need to be eligible for benefits.

Benefits Planner | Social Security Credits and Benefit Eligibility | SSA

[Opus 17]

You make one payment to the IRS for quarterly estimated taxes.  As part of your actual tax return for the year, you will list your income and expenses, calculate your taxable profit, your income tax owed, and include a schedule SE for the self-employment tax.  If you under-paid your estimate, you will owe more tax, and if you overpaid your estimate, you will get a refund.

The IRS will use the information from schedule SE to determine how much credit you get with the social security administration for the social security part of your self-employment.  You can check your online account with the social security administration to make sure everything is recorded correctly, although it may take a few months after you file your return for everything to be updated. 

In other words, you make one estimated payment, and the IRS will divide it up based on your schedule SE.