Do you pay taxes on net business and also SE taxes on the same amount?

waynemarcum — Thu, 06 Jun 2019 15:15:37 GMT

help!!!!!

Why do we pay taxes on your net total on you business, then turn around and pay SE taxes on the same amount??????

SE taxes for a self-employed person are the same as Socia...

BMcCalpin — Tue, 17 Mar 2020 19:40:45 GMT

SE taxes for a self-employed person are the same as Social Security and Medicare taxes on employees (also called FUTA).

An employee pays 7.65% of his/her wages for Social Security and Medicare taxes, while the employer pays the other 7.65%. A self-employed person has to pay the entire 15.3% on the net business income.

However, just as the employer pays half of the FUTA, the self-employed person is granted the ability to take an adjustment to income for one-half of the SE tax (this appears on line 14 of Schedule 1 (1040)), reducing taxable income. This is done automatically by TurboTax.

The other tax is federal income tax, which is a separate tax from the Social Security and Medicare taxes, and all are due.

[Edited 3/17/2020 2:40 pm CDT - updated Sch SE reference for 2019]

topic Do you pay taxes on net business and also SE taxes on the same amount? in Get your taxes done using TurboTax

Do you pay taxes on net business and also SE taxes on the same amount?

SE taxes for a self-employed person are the same as Socia...