Self Self Employment Taxes

For 2020, a .9% Additional Medicare Tax applies when income exceeds one of the following threshold amounts:

$250,000 MFJ $200,000 Single, HOH, or QW

If self employment income exceeds $____, a taxpayer must pay self emplopyment (SE) tax

$400

You do not have to file an income tax return if your net earnings from self-employment were less than $____

$400

For 2020, the first $__________ of net earnings is subject to both Social Security and Medicare taxes.

137,700

For income from self-employment, a tax rate of __% applies to the first $137,700 of neat earnings

15.3%

For income from self-employment, a tax rate of ___% applies to earnings in excess of $137,700

2.9%

What is Form 8959?

Additional Medicare Tax. An extra 0.9% tax on earnings in addition to the Medicare tax you already pay.

What is one of the main advantages of an S-Corporation?

Income passed through to S corporation shareholders is not self-employment income for self-employment tax purposes.

All net earnings are subject to _____

Medicare tax

Is income from payments to a retired partner that continue after death considered self employment?

No. The decedent's spouse would need to report the income but it would not be subject to SE tax.

Are wages, salaries and tips subject to self-employment tax?

No. The employer withholds Social Security and Medicare taxes.

A self-employed taxpayer should use Schedule __ to calculate self-employment tax.

SE

Schedule SE attaches to ___________

Schedule 1

Net earnings above $137,700 are not subject to ____

Social Security tax

Is farming income subject to self-employment tax?

Yes. Reported on Schedule F.