Social Security and Medicare are incredibly significant and hugely beneficial programs which are carefully regulated by the government. However, the funds for these expensive programs have to come from somewhere and, like many government-regulated institutions, they in fact are supported through taxes, specifically the self-employment tax. If you are in fact not self-employed you won’t have as big a bill coming, but you’ll still have to contribute regardless. There is a very real possibility that you will need to utilize the opportunities afforded by one or both of these services in the future, and as such it is fair that every citizen be required to make their contribution. However, though the entire United States does pay for Medicare and Social Security, not all of them do it in this particular way. In fact, this is a tax only for those who are not company employees. If you qualify, you should know that AFS Taxsavers is here to help.
\What Is The Self-Employment Tax?
- You only have to pay self-employment tax if your non-company earnings exceeded $400.
- As of 2012, you must pay a Social Security tax on the first $110,100 of income you earn. The rate fluctuates depending on how much you earned.
- The portion of the tax reserved for Medicare is likewise based upon your net earnings.
- After the amount you must pay has been calculated you’ll need to file your taxes in full. Your self-employment tax will be compared to your income tax.
You may have to pay a bit more or you might receive a refund depending on the numbers contained therein. You can only deduct a certain amount of your self-employment tax.
Where Does AFS Taxsavers Come In?
For those who qualify, self-employment tax is a hugely important consideration. It requires a great deal of calculation and prior knowledge/information to file it properly. Here at AFS Taxsavers, we’re proud to offer our services and our promise to make your tax experience far easier. We’ll help you calculate the necessary figures and make sure that your forms are filled out perfectly, ensuring that there will be no further complications concerning them. You can fully trust the experts at AFS Taxsavers with all of your tax filing needs, but don’t just take our word for it. Call today. You won’t regret it.