Have a Tax Question? Ask a Tax Expert
I have been living in US with green card for 3 years. I plan to become a citizen in 2 years time. I am self-employed, earning gross income of $12,000 per year.
Question1: Must I pay a social security tax to the IRS? I am 58 years old now.
Question 2:a) Must I pay a self-employment tax?
b) How is this s-e tax different to soc sec tax?
Question 3: What is the minimum gross income I must earn, to NOT have to file a 1040 ?
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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.
Thanks, XXXXX XXXXX am more confused now.
1)Thanks for explaining the difference between se and soc sec tax.
However, I need to know if
a) Is it MANDATORY or OPTIONAL, to pay in se tax?
b) Due to my question below, I am unclear as to how much I must gross, before having to pay se tax, if in fact it is mandatory.
2) The IRS website states that you do not have to file taxes, if you gross $9,750 or less, as self-employed, single person of my age.
Yet you say the figure is $400.
3) A new question for you is: At what point can I stop paying tax in TWO different countries?
(I currently pay tax in my home country, South Africa, AND here in USA.)
http://www.mydollarplan.com/money-file-taxes/ says that you are correct, re $400 min net. The @9,750 seems to relate to the GROSS income. Is that correct?
So let me get this straight:
If I only net $400 for the entire year, I have to pay 13.3% to se tax. That leaves me with $346.
What federal and state taxes must I then pay on the remaining $346 ?
Sorry, I still don't understand. Turbotax says $400 NET,
but you say $400 GROSS.
Second, what kind of income is "not subject to se taxes" ?
Many thanks, XXXXX XXXXX getting there...
THANKS, XXXXX XXXXX BETTER SENSE.
Regarding my previous query:
"I currently pay tax in my home country, South Africa, AND here in USA". Idid not make my issue clear, perhaps:
My issue is: Once I become a US citizen, is it only at THAT point, that I will cease to have to pay
-South African tax to SA
-AND... US tax to US
and instead, simply pay all worldwide tax to US.
You did not answer my query re -
Once I become a US citizen:
Will I ONLY need to pay the IRS tax on SOUTH AFRICAN income
Will I need to pay South African taxes, TO SOUTH AFRICA, on SA interest income?
That last question does NOT require you to know SA tax law, only US tax law !
So I still do not have an answer.
Also, in one of my previous questions, you wrote 'gross' instead of 'net'. I had to correct you...
In addition, you did not clarify the issue re the $9,750 minimum income.
Thus,I paid $20 to get no answers, except for one correctly answered query re se tax...
Please answer all the above, or I will be asking for a refund.