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Employee
June 1, 2019
Solved

I just completed my Draft return using the self employment edition for 2 LLCs. I owe federal taxes. Would this include self employment taxes, or is that separate ?

  • June 1, 2019
  • 2 replies
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Are self employment taxes paid as part of your federal tax return, or is that paid separately? If separate, how do I find out how much I owe and where do I pay it?
Best answer by AnnaB

Self-employment taxes are calculated as part of your return and are included.

2 replies

AnnaBAnswer
Employee
June 1, 2019

Self-employment taxes are calculated as part of your return and are included.

VolvoGirl
Employee
June 1, 2019

The tax due includes any Self Employment tax.  SE tax is on 1040 line 57.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit 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.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.

But tell me about the LLCs.  Are they Single Member LLC?  If you elected to be an S corp you need to file a separate Business returns for them.  

oconnormAuthor
Employee
June 1, 2019
Thank you for your quick answer.......very helpful !!! Both LLCs are 50/50 partnerships with my wife. We will be converting one of them to S Corp for 2017 because I have been told it has tax advantages for us.