Tax question for self employed people

[marydmjj]

As of November 2005 I am self employed as a real estate agent. My DH says I need to pay social security taxes. Does anyone know what kind of taxes I need to pay besides the usual yearly taxes?

TIA,

 

[jfulcer]

Here in WI, you pay what our accountant calls a 'self employment tax' which pretty much amounts to the same tax a company pays into Social Security. I amounts to pretty much doubling your current state tax payment.

I'd suggest talking to a CPA just to be sure. Most states even allow you to pay a CPA to do your taxes, and it gets deducted as a business expense. It's worth checking into.

 

[FroggyinArk]

i am self employed and do my own taxes, yes you must pay self employment tax to federal, and som,e states, this is the equvilient of medicare/social security payments.. figure about 15 % of the reported income.

 

[mom2boys]

For federal purposes, you will file a Schedule C to show the Profit or Loss form you business. Once the Sch C is complete you need to complete Schedule SE which will calculate your self employment tax. 1/2 of the Self-Employment Tax is allowed as an Adjustment to Income on the front of your Form 1040. The full amount of the SE tax is added to any income tax you owe on page 2 of Form 1040. This year & in future years you may need to make quarterly Estimated Tax Payments. The tax system is a "pay as you go" system, so there are penalties if you don't owe too much at the end of the year.