Ask Experts Questions for FREE Help !
Ask
    jim2816's Avatar
    jim2816 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 9, 2008, 07:30 AM
    Social security taxes - on net or gross?
    I am self employed, 68 years old and was surprised that I had to pay 15% social security tax on my small earnings.
    My question is simple - is this tax on my my gross earnings or my net?
    twinkiedooter's Avatar
    twinkiedooter Posts: 12,172, Reputation: 1054
    Uber Member
    		  
    #2

    May 9, 2008, 07:33 AM
    Gross is taxed.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    May 9, 2008, 07:42 AM
    You will report yourself employed income on schedule C. On sch. C, you can deduct your business related expenses. The net income (after deducting the expenses) is subject to SE tax at 15.3%.
    When you are self employed you pay social security and Medicare for employee as well as employer. When you are employee you pay only your own part that is 7.65%.

    For more on self employed income and filing, read Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Social Security Disability and Taxes [ 10 Answers ]

Can the IRS take any of my disability to pay back @ $16,000 that I owe them? They want me to pay $335 a month to them. Can I have this lowered at all? Can I just tell them that I want to pay $100 (or less) a month? Thank you for any assistance you can give me.

Social Security And Medicare Taxes [ 1 Answers ]

I am a self -Employed. I was about to file my Income Taxes when I noticed on my 2007 W-2 Wage and Tax Statement that nothing was deducted from my 2007 paycheck for Social Security and Medicare Taxes. I'd soon found out that I was put on SS & Medicare "EXEMPT" by mistake when we set up our Payroll...

Tax social security benefits gross income [ 2 Answers ]

My question is I am single taxpayer, and I received $6,000 in Social Security benefits. My adjusted gross income for the year was $18,000 not including my social security benefits and I also received $30,000 in tax-exempt interest income what is the amount of Social Security benefits to include in...

Social Security Taxes - OPT - H1 [ 1 Answers ]

I am Indian Student on F1-OPT till December 18,2006 while my H1 starts on Oct 1,2006. I am not paying any social security taxes. The question I have is do I need to start paying the social security taxes from oct 1 onward or can I continue till Dec 18,2006 without paying social security and after...

Social security and medicare taxes [ 1 Answers ]

Hello, I am on H1B. My payroll dept forgot to deduct my social and medicare taxes from my paycheck AND it continued to deduct taxes as per F1. So do I need to pay my medicare and social now with 2005 tax returns? If yes How should I pay those taxes, which forms should I use? Thanks

View more questions Search