Comments on: Social Security Payments and Self Employment Income http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html personal finance blog with anecdotes, advice and commentary. Sun, 12 Feb 2012 23:30:41 +0000 hourly 1 By: fivecentnickel.com http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html/comment-page-1#comment-43804 fivecentnickel.com Sun, 19 Nov 2006 02:34:44 +0000 http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html#comment-43804 Sounds like John nailed it. Thanks. Sounds like John nailed it. Thanks.

]]> By: John http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html/comment-page-1#comment-43398 John Fri, 17 Nov 2006 17:53:47 +0000 http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html#comment-43398 I believe the answer is pretty simple and is in the computation on the Schedule SE. In computing your income from self employment (i.e. subject to SE tax), you subtract any W-2 wages you have for the year. So the short answer is that you only have to pay SE tax on the amount that gets you from your W-2 total to the $94k limit. make sense? You'll need to use the long SE. http://www.irs.gov/pub/irs-pdf/f1040sse.pdf I believe the answer is pretty simple and is in the computation on the Schedule SE. In computing your income from self employment (i.e. subject to SE tax), you subtract any W-2 wages you have for the year. So the short answer is that you only have to pay SE tax on the amount that gets you from your W-2 total to the $94k limit. make sense?

You’ll need to use the long SE. http://www.irs.gov/pub/irs-pdf/f1040sse.pdf

]]> By: CK http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html/comment-page-1#comment-43340 CK Fri, 17 Nov 2006 13:36:20 +0000 http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html#comment-43340 Jim- Ask Kerry at taxguru.net it might take him a bit to get back to you but he'll give you the answer. Jim-

Ask Kerry at taxguru.net it might take him a bit to get back to you but he’ll give you the answer.

]]> By: jim http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html/comment-page-1#comment-43327 jim Fri, 17 Nov 2006 12:36:54 +0000 http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html#comment-43327 Jonathan: I'm wondering whether I'm need to pay the employer side of SS for income earned from my business, not whether my employer is paying their taxes. Jonathan: I’m wondering whether I’m need to pay the employer side of SS for income earned from my business, not whether my employer is paying their taxes.

]]> By: Jonathan http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html/comment-page-1#comment-43274 Jonathan Fri, 17 Nov 2006 09:31:04 +0000 http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html#comment-43274 In your case, I would assume that your employer has already paid their half of the taxes on your salary, so now you only have to pay the remainder. In your case, I would assume that your employer has already paid their half of the taxes on your salary, so now you only have to pay the remainder.

]]> By: perry http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html/comment-page-1#comment-43194 perry Fri, 17 Nov 2006 04:51:23 +0000 http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html#comment-43194 When I went from contractor to full time I had to take the double hit on social security. I brought my taxes into H&R Block just to make sure. The worst thing you can do is estimate too little and then you get screwed. I have tax documents you can look at so you can see for yourself. When I went from contractor to full time I had to take the double hit on social security. I brought my taxes into H&R Block just to make sure. The worst thing you can do is estimate too little and then you get screwed. I have tax documents you can look at so you can see for yourself.

]]> By: jim http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html/comment-page-1#comment-43190 jim Fri, 17 Nov 2006 04:41:34 +0000 http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html#comment-43190 That still doesn't explain it because I don't pay the tax until the end of the year so I haven't paid any excess employer's tax. That still doesn’t explain it because I don’t pay the tax until the end of the year so I haven’t paid any excess employer’s tax.

]]> By: Mike http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html/comment-page-1#comment-43188 Mike Fri, 17 Nov 2006 04:28:36 +0000 http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html#comment-43188 According to <a rel="nofollow" href="http://pfr.sagepub.com/cgi/content/abstract/30/4/310" rel="nofollow">this link</a> The social security tax is levied on wages and salaries up to a maximum annual amount,with employee and employer each paying the same amount of tax on the employee's behalf.Workers earning more than the annual maximum taxable earnings and having more than one employer are vulnerable to excess social security tax withholding. The employee's share of excess social security tax can be claimed as a (refundable) credit against the federal individual income tax, but the employer's share cannot be claimed. If the employer's share of the social security tax is borne by the worker, then the unrefunded excess employer's tax is an additional tax on the worker. This additional tax is highly progressive,and its progressivity has increased in the past four decades. According to this link
The social security tax is levied on wages and salaries up to a maximum annual amount,with employee and employer each paying the same amount of tax on the employee’s behalf.Workers earning more than the annual maximum taxable earnings and having more than one employer are vulnerable to excess social security tax withholding. The employee’s share of excess social security tax can be claimed as a (refundable) credit against the federal individual income tax, but the employer’s share cannot be claimed. If the employer’s share of the social security tax is borne by the worker, then the unrefunded excess employer’s tax is an additional tax on the worker. This additional tax is highly progressive,and its progressivity has increased in the past four decades.

]]> By: jim http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html/comment-page-1#comment-43175 jim Fri, 17 Nov 2006 03:40:03 +0000 http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html#comment-43175 True, but that's after the tax year is over... if I know I am on the hook for more social security payments, I would more aggressively pursue some deductions (like getting a new phone, another monitor, etc.). True, but that’s after the tax year is over… if I know I am on the hook for more social security payments, I would more aggressively pursue some deductions (like getting a new phone, another monitor, etc.).

]]> By: Trent http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html/comment-page-1#comment-43161 Trent Fri, 17 Nov 2006 02:20:08 +0000 http://www.bargaineering.com/articles/social-security-payments-and-self-employment-income.html#comment-43161 Easiest thing would be to let TurboTax do it for you. Easiest thing would be to let TurboTax do it for you.

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