You saidMy husband retired in June 28, 2024 and is working part time and will receive a 1099 at the end of the year. How do we pay in for social security and medicare?

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September 13, 2024
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xmasbaby0

Employee

If your spouse is self-employed for part of the year then he will pay self-employment tax for Social Security and Medicare for his self-employment income. He can pay estimated tax beforehand, or pay at tax time. Your post implies that up until late June he had a W-2 job with tax withheld.

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.**

pk12_2

Employee

@mbbennett81 , agreeing with my colleague @xmasbaby0 , excellent answer and noting that your husband would be receiving a 1099-NEC from his part-time work, would mean that he will have to report this 1099-NEC income on Schedule-C ( just like a self-employed or Sole proprietor business ).

On schedule-C, you show your gross income and are allowed to deduct allowable expenses ( like travel/mileage etc. i.e. expenses that are usual and necessary ) to maintain this stream of income. Incomes over 400 ( if my memory serves my right ) will trigger Schedule-SE ( this is for Social Security & Medicare contribution at 15.3% ) fill out.

Note that while the tax on the 1099-NEC income . needs to be up to date via quarterly estimated payments, there is no such requirement for the SECA ( equivalent to the FICA mentioned above ).

Is there more one of us can do for you ?

TomD8

Employee

Since your husband will be receiving a 1099-NEC at year's end, the IRS will regard him as a self-employed "business", also known as a "sole proprietor." As such he will have to report that income on Schedule C, which will be part of his regular tax return. His self-employed income will be subject to both income tax and self-employment tax. The latter covers his Medicare & Social Security tax and is reported on Schedule SE.

When you enter his 1099-NEC into TurboTax, the program will automatically generate both Schedule C and Schedule SE for you and will calculate the taxes due.

Your husband should keep track of the business expenses associated with his self-employment, because he can deduct these expenses from his self-employment income. He pays taxes only on the net income after expenses. The expenses are deducted on Schedule C.

Ordinarily no taxes are withheld on a 1099-NEC. Most self-employed people thus have to pay quarterly estimated taxes. Here's a TurboTax help article on that:

What are federal estimated taxes? (intuit.com)

If you live in a state with an income tax, you might have to pay estimated taxes to the state as well.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.