Skip to main content
June 3, 2019
Question

Do I pay self employment tax on nonemployee income?

  • June 3, 2019
  • 1 reply
  • 0 views
No text available

1 reply

Employee
June 3, 2019

If your 1099-MISC has an amount in Box 7 (Nonemployee compensation), the payer did not consider you an employee, so that classifies you as self-employed. So if your self-employment income is $400 or more, after deducting expenses, you'll have to pay self-employment tax.

Whether your self-employment is full-time or something you do on the side (like drive for Uber, babysit or blog), you need to pay self-employment tax on the money you made.

NOTE: If you’re self-employed, you can claim a federal deduction for half the SE tax you pay, which can help lower your taxes. Self-employment tax and income tax are two separate taxes. You can owe self-employment tax even if you don't need to pay income tax.

https://ttlc.intuit.com/replies/3301474