![]() ![]() You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply: So if you have other income like W2 income your extra business income might put you into a higher tax bracket. The SE tax is in addition to your regular income tax on the net profit.įor SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017 SE Tax on 92.35% of your net profit in addition to your regular income tax on it. The SE tax is already included in your tax due or reduced your refund. ![]() You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040. So you get social security credit for it when you retire. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. You pay 15.3% for 2017 SE tax on 92.35% of your Net Profit greater than $400. Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C. There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Self Employed return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed. Home Office Expenses … Business Use of the Home Publication 334, Tax Guide for Small Business So you need to keep your own good records. Here is some reading material…… You may get a 1099-Misc for some of your income but you need to report all your income. If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. If they are new to being self employed and are acting as their own bookkeeper and tax preparer they need to get educated. ![]()
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