Comments on: How Is Self Employment Tax Calculated? http://yourjobsucks.biz/how-is-self-employment-tax-calculated/ Just another WordPress weblog Fri, 10 Sep 2010 06:03:37 +0000 http://wordpress.org/?v=2.6.3 By: Paul Ding http://yourjobsucks.biz/how-is-self-employment-tax-calculated/#comment-136 Paul Ding Wed, 11 Jun 2008 17:06:38 +0000 http://yourjobsucks.biz/how-is-self-employment-tax-calculated/#comment-136 A corporation doesn't pay self-employment tax. Self-employment tax is calculated on your earnings in self-employment, not your adjusted gross income. Specifically, you add together profit (or loss) from Schedule F, Schedule C Schedule C-EZ Partnerships K-1 (Form 1065) Partnerships K-1 (Form 1065B) You multiply the net earnings/loss by 92.35% to get total taxable earnings. If the total is less than $400, you don't owe SE tax. (You have the option of paying some, anyhow, if you want to and certain conditions apply. That's useful if you need to build up your earnings record.) If your total is at least $400 but less than $94200, you pay 15.3% If your total is more than $94200, then you owe 2.9% plus $11680.80 Half of your self-employment tax is deductible from your adjusted gross income before calculating income tax. The link below is the instructions for SE tax. The book is quite readable, if you care to RTFM. A corporation doesn’t pay self-employment tax.

Self-employment tax is calculated on your earnings in self-employment, not your adjusted gross income.

Specifically, you add together profit (or loss) from
Schedule F,
Schedule C
Schedule C-EZ
Partnerships K-1 (Form 1065)
Partnerships K-1 (Form 1065B)

You multiply the net earnings/loss by 92.35% to get total taxable earnings.

If the total is less than $400, you don’t owe SE tax. (You have the option of paying some, anyhow, if you want to and certain conditions apply. That’s useful if you need to build up your earnings record.)
If your total is at least $400 but less than $94200, you pay 15.3%
If your total is more than $94200, then you owe 2.9% plus $11680.80

Half of your self-employment tax is deductible from your adjusted gross income before calculating income tax.

The link below is the instructions for SE tax. The book is quite readable, if you care to RTFM.

]]> By: bigjacka55 http://yourjobsucks.biz/how-is-self-employment-tax-calculated/#comment-135 bigjacka55 Wed, 11 Jun 2008 02:09:03 +0000 http://yourjobsucks.biz/how-is-self-employment-tax-calculated/#comment-135 all you have to do is know how much you made than look at the tax forms, which you can get at the library, and look at the chart and see how much you need to pay by how much you made all you have to do is know how much you made than look at the tax forms, which you can get at the library, and look at the chart and see how much you need to pay by how much you made

]]> By: rainbowcraft http://yourjobsucks.biz/how-is-self-employment-tax-calculated/#comment-134 rainbowcraft Sun, 08 Jun 2008 11:46:16 +0000 http://yourjobsucks.biz/how-is-self-employment-tax-calculated/#comment-134 Ask a good accountant. Ask a good accountant.

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