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 ?
The Tax Court held that Fleischer should have treated the income attributed to FWP as his own income on Schedules C for the years in question and should have reported and paid self-employment tax on the income.
No self-employment tax is due unless net earnings from self-employment are at least $434 for the taxable year ($400/92.
However, only $200 is subject to the OASDI self-employment tax ($106,800-$106,600 = $200), but the entire $106,600 is subject to the HI tax.
The self-employment tax will apply if a business is classified as a partnership for tax purposes.
Some patrons did not report the value-added payments for self-employment tax purposes.
Of the 13 returns reporting net income on Schedule C, nine paid self-employment tax on the return as originally filed, one reported net income of less than $400 (the threshold amount for paying self-employment tax), and three reported net income over $400 but failed to calculate self-employment tax.
Self-employment tax, phone, cell phone, and pager expenses, as well as supplies also factor into our fees.
6 billion in personal tax payments (such as federal and state income taxes, federal self-employment tax, and property taxes).
1% self-employment tax, to cover the employee and employer shares of Social Security and Medicare (FICA), on their incomes.
6 million individual income tax returns filed for tax year 2014 and provides estimates on sources of income, adjusted gross income, exemptions, deductions, taxable income, income tax, modified income tax, tax credits, self-employment tax and tax payments.

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