1099 NEC

[Sawduster]

I retired FRA Jan 2019 and I worked as a contractor earning over 15k. I also worked in 2020 earning over 25k. I did not pay any taxes on the earning or FICA. I did however, have pay 8K taxes taken out of my pension and SS in 2020. My turbotax is complete and I own $89XX this year with a penalty for not reporting or paying earning quarterly.  This if fine. My question is do I owe FICA for both years. Turbotax 4137 and 8919 are blank. What should I do?   Thanks in advance for your assistance.

[VolvoGirl]

Each year is separate.  Didn't you file your self employment on 2019 Schedule C?  If you have a Net Profit you pay self employment tax for the FICA.  If you didn't fill out Schedule C you may need to amend 2019.

[Sawduster]

Yes. I completed Schedule C with Box 1b & 1e value of 25K Box 7 = 25k. 

[VolvoGirl]

Oh and neither of those forms apply to you.  Those are for employee W2 wages. You are self employed.  How did you report your self employment?  Like I said you need to fill out Schedule C.  

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.  How to enter self employment income

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

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare (FICA).

[Sawduster]

Also, my 1040-SR Line 23 Other taxes including self employment tax from schedule2, line 10 = X,226. So I'm paying self employment tax. But does this include FICA. Is FICA due? 

[Sawduster]

Volvo Girl. I really appreciate the assist. Looks to me all is correct.

Thanks for your clear and concise explanation.  

[VolvoGirl]

Yes.  The self employment tax is for FICA.  You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400).

You are paying 15.3% for……

SS for employer 6.2%

SS for employee 6.2%

Medicare for employer 1.45%

Medicare for employee 1.45%

[Sawduster]

Perfect!

👍 👍's up for Volvo Girl