What is Self Employment Tax? | simpleetax
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- Опубліковано 3 жов 2024
- This video explains all you need to know about Self Employment taxes for freelancers and independent contractors.
Music by: Happy Chances by HookSounds (www.hooksounds.com)
This video is for entertainment and informational purposes only and should not be considered tax advice. By watching or commenting on this video, we are not forming a professional relationship. If you seek specific tax advice, please consult a CPA from your local area.
Thank you!!! So many places I've read up on this makes it sound like Self-Employment taxes were completely separate from Social Security and Medicare taxes. Your video was so helpful and easy to grasp.
Glad it was helpful! Thank you for watching Bethany, have a wonderful weekend!
Thank you for explaining this like I’m a child. Really. I was having a hard time 😂
You explained this so clearly. Thank you sooooooo much!
I agree
can you make a video on how to start self employment bookkeeping? how to start paying estimated quarterly taxes - how to estimate?
Thank you so much! I liked your simple and very informative video. Great job!
I'm 16 and I draw pictures for people for money but I don't know that much about taxes. I don't wanna get in trouble for not paying taxes though. Although I only make 10 bucks a pop.
Hello! I really enjoyed your video!
I am a new contractor and i would love more information on this topic
😂😂 Hello boys and girls! Today's topic will be Self-employment taxes! I bet you understand it though.
The music is way too loud.
Thank you for the suggestion and comment, we will make sure to tone it down next time!
can you make a video for door dash and uber empoloyes
Can you write off any of the income of the SE tax? I was able to write off all of my taxable income. Seems I still owe SE tax.
It is possible you are confusing SE tax with federal income tax. It is entirely possible that you owe both SE tax and then your SE income flows to your 1040 and you pay federal income tax on top of it. It is also possible that you have enough write-offs on schedule A or the standard deduction itself can wipe out your income from your business for federal tax purposes and you would end up with no federal tax liability, but you would still owe the SE tax.
i have a question if I am paying quarterly do I only pay SE Tax on for 3 months and so on?
Thank you for the question. A portion of each quarterly payment should cover the SE tax. Apologies for the delayed response, thank you for supporting the channel!
thanks, this doesnt apply to me, so i didnt want to watch that other video that was 30 minutes, i just wanted a summary.
is self employmnet 1099 misc?
It can be but usually is part of self employment income
Thank you both for the comments, much appreciated. 1099-MISC is a tax form to report contractor/non-employee income. Therefore, self employment taxes would apply.
Great videos! So I dohave one question, do I pay the state the state income tax and the federal gov't the federal income tax and SE taxes? Or does the state collect the SE taxes?
Samuel Sherrow thank you for the great question and your support! You will submit separate payments to the Federal gov and your applicable state gov. SE tax is a Federal tax, therefore is only paid to the Federal government.
How do you pay the state (income?) tax?
I setup the 1040ES form but that from what I understand is Federal IRS, which I will pay quarterly.
Thank you Jon for the question! You can pay the state income tax using your state's online tax page. For state quarterly estimates, I generally recommend you apply your state income tax rate to the total taxable income for the quarter and submit such amount as a state quarterly payment. Thanks for watching!
Can resident claim SS taxes and Medicare Taxes?
Dear Wahed, thank you so much for the question. I'm not quite sure what your question is, if you can please expand. Thank you in advance!
Thanks it helps me a lot.
This video would be better if the music was not so loud I couldn’t even hear or understand anything you said
Yep very annoying.
Thank you both for the comment and suggestion. Apologies for the loud music, we will make sure to reduce the music level going forward. Thank you for your support!
What if you make under 127,200 like I’m an independent contractor for Ubereats and I made about 7k in the year do I have to pay the social security and Medicare tax
Hello Maria! Thank you for the question. Yes, you do have to pay Social Security and Medicare taxes in the form of Self Employment taxes on your Ubereats income. Thanks again for the great question!
No you do NOT unless you work for a FEDERAL GOVERNMENT> Do you work for a Federal Govt? If NOT the you do NOT owe INCOME TAX Legally. Most Americans like you and I who DO NOT work for the Federal government DO NOT have to pay INCOME tax legally. Here is an easy description on How you pay and Who does not have to pay taxes ua-cam.com/video/-wPGoC0-frc/v-deo.html Most Americans Do NOT HAVE TO PAY FEDERAL Taxes because they are NOT federally employed. THE IRS defined words such as WAGES, EMPLOYEES, EMPLOYER as "en employee of a public office" DO YOU HOLD A PUBLIC OFFICE? If not then you don' have to pay federal taxes. Easy. That's how the get tricked.
Real people file honest TAXes and get refunds www.losthorizons.com/BulletinBoard.htm
The 16th Amendment In a NUTSHELL losthorizons.com/Newsletter/NutshellLargePamphlet.pdf
I love you
So if I get payed less than 127k I don't have to pay SS?
Does the same thing applies for EU citizens living in the EU? Or is it different there
Thank you Valen for the question. You would have to check with a local EU accountant.
The stupidest tax there is.
They need to eliminate this so as to promote small business.
The government gets payroll taxes - that's just part of the deal. If you think the SE tax is stupid, then you should also think payroll taxes are stupid, because that's literally what the SE tax is. It's a payroll tax. When you are employed by an employer, you pay medicare and social security. Your employer matches this. When you are SELF-employed, you pay both sides of this, and it is called the SE tax.