self-employment tax

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Self-employment tax

A tax self-employed people must pay to qualify them to receive Social Security benefits at retirement.

self-employment tax

A federal tax similar to the Social Security and Medicare taxes deducted and matched by employers. It is equal to 15.3 percent of net earnings from self-employment and must be calculated on Schedule SE and reported on Form 1040. Real estate agents, brokers, mortgage  brokers, and all other self-employed individuals are required to pay self-employment taxes. (See Tax Topic 554, “Self-Employment Tax” and Publication 334, “Tax Guide for Small Business,” at the IRS Web site,

References in periodicals archive ?
A minister must include the housing allowance in self-employment income to calculate the self-employment tax.
The self-employment tax is levied and collected as part of the income tax.
There are no provisions in the self-employment tax statute or regulations that specify what distinguishes a limited partner from a general partner for purposes of the statute.
and c) self-employment tax under Code [section] 1401 et seq.
Self-employed workers must pay a self-employment tax that raises their effective payroll tax rate to 14.
reported only the members' guaranteed payments as being subject to self-employment tax.
In Riether, a district court considered whether partners in an LLC taxed as a partnership for federal tax purposes could avoid paying self-employment tax on their entire distributive share of partnership income solely because they "received a Form W-2 from [the LLC] for the year 2006" and, thus, "were not self-employed.
Though the federal 2010 Tax Relief Act increased the amount of self-employment tax that may be deducted in computing federal adjusted gross income, California has not conformed to this change.
This rate cut is considered to come from the employee's share of employment taxes, so it does not reduce your above-the-line income tax deduction for self-employment tax.
Self-Employment Tax Savings--Self-employed individuals pay their share of Social Security and Medicare taxes through self-employment tax.
The move to learn more about small-business taxpayers and their needs comes as the IRS estimates that more than 40 percent--$148 billion--of the tax gap is attributed to unreported income earned by unincorporated businesses and the associated unpaid self-employment tax.

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