How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask jgordosea Your Own Question
jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3161
Experience:  I've prepared all types of taxes since 1987.
Type Your Tax Question Here...
jgordosea is online now
A new question is answered every 9 seconds

I make 160k as an employee for my company in nh. I max out ...

Resolved Question:

I make 160k as an employee for my company in nh. I max out ss and medicare tax burden as a result. I now have an opportunity to make an additional 10-20k working as a contractor freelancing in another business. I would be getting a 1099. Will I have to pay social security and medicare tax on that additional 10-20 or since I already maxed out in my company will I just owe federal tax?
Submitted: 9 years ago.
Category: Tax
Expert:  jgordosea replied 9 years ago.


There is a maximum and you do not have to pay the 6.2% for FICA; but there is no maximum for Medicare so you do have to pay 2.9% (both the employer and employee rates of 1.45% each) in addition to income tax.

See Social Security and Medicare Taxes for the yearly maximum amount.

If you have any expenses related to earning the income from freelancing you will be able to deduct those expenses and only pay income tax and Medicare on the net income by filing Schedule C

I hope this helps for estimating the tax due on the income reported on the 1099.

Best wishes.

jgordosea and 3 other Tax Specialists are ready to help you