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August 28, 2024
Question

New Business Owner SE Taxes when operating loss for year is confirmed

  • August 28, 2024
  • 1 reply
  • 0 views

Hello!

I have started an SSTB-type business this year as an independent private wealth advisor. I am projecting a net operating loss this year of nearly $20,000. I received my first monthly revenues in July in August totaling around $500. This will project to get to $3k-$4k by the end of the year. 

If I know my expenses of starting up are well-exceeding my revenues for this first year of my business and receiving a 1099, do I need to pay quarterly FICA estimates?

Important to note: I am also a W2 in a different position at the same firm.

Thank you for your guidance and happy to answer any questions!

    1 reply

    August 28, 2024

    Thanks for joining us today, lucasfelbel31!

     

    Excellent question!

     

    Congrats on branching out! You will not owe Social Security or Medicare taxes during the loss years.

    For years that you project a profit, your Estimated Tax Payments will include the FICA.

    Self-employment Tax Calculator

     

    Here is an awesome link that goes into more detail: Self-employment Taxes

    For additional helpful information: Estimated Taxes - Common Questions