SELF EMPLOYED SOCIAL SECURITY / MEDICARE DEPOSIT

Forum|Forum|1 year ago
August 28, 2024
2 replies
0 views

HOW DOES A SELF EMPLOYED INDIVIDUAL MAKE SOCIAL SECURITY AND MEDICARE DEPOSITS FROM INCOME?

xmasbaby0

Employee

If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare, you will need to use online Premium software or any version of the CD/download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

calculator-2021-2022-50907/

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

DoninGA

Employee

If you have net income from Self Employment of $400 or more then you will owe Self Employment taxes. The SE taxes owed are both the employee and employer FICA taxes (Social Security and Medicare). The taxes paid are 15.3% of the net income.

marctu

So, I think your question was when and where to make the estimated tax payments. The dates to make the payments are April 15, June 15, and September 15, and January 15 of the following year, unless the date falls on a weekend or holiday. In that case the payment is due on the next business day. So this year the third quarter payment is due on September 16, 2024.

If you are self-employed, you will need to report your net earnings to Social Security and the Internal Revenue Service (IRS). Net earnings for Social Security are your gross earnings from your trade or business, minus all of your allowable business deductions and depreciation.

Generally, the amount subject to self-employment tax is 92.35% of your net earnings from self-employment. You calculate net earnings by subtracting ordinary and necessary trade or business expenses from the gross income you derived from your trade or business. You can be liable for paying self-employment tax even if you currently receive Social Security benefits.

You can use this calculator to track your expenses: Track self-employed expenses year-round with TurboTax Expense Monitor

You can use this Turbo Tax calculator: W-4 Calculator

You can also use the IRS calculator: Tax Withholding Estimator

I would strongly encourage you to make estimated payments through the IRS. Go here: https://www.irs.gov/payments

You save the cost of postage plus no one can claim that it got "lost in the mail". If you do mail the 1040-ES or are now creating a 1040-ES go here for the mailing addresses: Where to file addresses for taxpayers and tax professionals filing Form 1040-ES The mailing addresses are based upon the state you live in.

Be well and safe!

Marc T.

Turbo Tax Expert

27 Years of Experience Helping Clients

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"