Social Security and Medicare

[marjan3612]

We have filed our federal and state tax returns with Turbotax married filed jointly. I have a W2 but my husband is self-employed. How do we pay social security and madicare taxes for him using Turbotax? Or is it already done along with the federal or state tax return? If it can't be done in Turbotax what should we do to pay for those?

[MinhT1]

If your husband has reported self-employed income on his tax return, that self-employed income is subject to self-employment tax (for social security and Medicare).

TurboTax will automatically calculate self-employment tax on Schedule SE and include that tax on line 4 of Schedule 2 of your form 1040.

You do not need to pay it separately.

[marjan3612]

Thank you so much for your reply. It was his first year of the business. He had income but he also had a lot of expenses and also a huge bad debt expense. So basically he was negative in total. Does that still count. How does social and medicare go with this situation? 

[JeffreyR77]

Your husband's social security and medicare liability is based on his self-employment income. 

If his self-employment income was a loss for the year, he has no liability and will pay no social security or medicare tax for 2020. 

He will also have no income subject to income tax and the loss from his self-employment will lower the amount of other household taxable income, reducing overall tax this year.