Self Employment Tax – are W2 earnings considered in determining the maxumum earnings subject to SE Tax?
Posted on
July 04, 2011 by
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Question: Self Employment Tax – are W2 earnings considered in determining the maxumum earnings subject to SE Tax?
I earn more than 0k in W2 wages, and about k in 1099 income annually. Since there is a maximum earnings subject to social security tax and i have reached that cap in W2, does this mean by k is not subjected to the social security part of SE tax?
Q&A:
Answer by liliana
,000 on 1099 Misc form? You have to pay SE taxes.
Answer by wartz
You maxed out on Social Security but will owe medicare tax on the 1099 income because it has no cap.
Answer by Judy
Yes. Look at the schedule SE – it’s accounted for there.
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