Self Employed Person Do I need to pay Medicare, social security and federal taxes?

[user17581279083]

Greetings, I am self employed and always just pay federal and state taxes. So, have I been doing this wrong? I would hate to get to retirement and not get any money because I was supposed to be ALSO Paying Medicare taxes, social security taxes and any other taxes I am unaware of. I want to be covered if I ever need to claim SSDI For an injury or sickness as well. So, I have only been paying Federal and State Taxes....have I been doing this wrong? And if you say I have to pay OTHER Taxes, like social security taxes and medicare or any other taxes, please include the address to where I am to send the taxes too please. I live in North Dakota. I am age 55 and my name is Shane.

[FranklinF · Accepted solution]

As a self-employed individual, you're also responsible for paying Social Security and Medicare taxes, collectively known as self-employment tax. If you've only been paying federal and state income taxes, you haven't been contributing to these programs. This means you wouldn't qualify for Social Security retirement benefits or Social Security Disability Insurance (SSDI) in the future.

**Please say "Thanks" by clicking the thumbs up icon in a post
***Mark the post that answers your question by clicking on the "Mark as Best Answer"

[VolvoGirl]

If you have been reporting your self employment on Schedule C in your tax return you probably have been paying the Social Security & Medicare SE tax.   It is included in your federal tax due.  Self employment tax is on the 1040 Schedule 2 line 4 which goes to 1040 line 23.

You will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it.   You pay 15.3% SE tax on 92.35% of your Net Profit (If it is 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.  So you get social security credit for it when you retire.  

[user17581279083]

Thank You....So, HOW Do I pay this monthly then? Meaning, I know where to send Federal Estimated taxes....but where do I send medicare and social security taxes? Is it the same address? Do I need to send THREE Individual Checks? One for each item...federal taxes, social security taxes, medicare? Thanks so much. I live in North Dakota

[VolvoGirl]

No.  It all goes to the IRS.   The SE tax is included in the quarterly 1040ES estimated payments.  If it wasn’t included you need to increase the 1040ES payments to add it.   That’s mainly what the estimated payments are for.   To cover the self employment tax.   Have your returns been showing any self employment tax on them?