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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29953
Experience:  Taxes, Immigration, Labor Relations
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I am a 1099er and live in Texas. i made $40k in 2015. My

Customer Question

I am a 1099er and live in Texas. i made $40k in 2015. My accountant says I fall in the 25% tax bracket. My question is what percentage will I bave to pay for social security and medicare? And is this over and above the 25% income tax?
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
I think I am somehow in the wrong category. Can you place thisin the accounting category?
Expert:  Lev replied 1 year ago.

As a self-employed - your self-employment tax liability (which includes social security and Medicare taxes) is 15.3% on NET self-employment income.
and yes - that is in additional to income tax liability.

On your tax return - self-employment taxes and income taxes are added together.

Customer: replied 1 year ago.
Thank you.
Expert:  Lev replied 1 year ago.

So if you run a business as a solo proprietor - you will be subject to both - income and self-employment tax.

You will report your income and may deduct qualified expenses.- you may report all business income and expenses -

on the schedule C -

Expert:  Lev replied 1 year ago.

The net income (after deductions) will be reported on the form 1040 line 12 -

If the business has net income over $400, it may be required to file Schedule SE, Self-Employment Tax

and net self-employment income is subject to 15.3% self-employment tax.

Self-employment taxes from schedule SE will go to the form 1040 line 57 -

Also - you will deduct half of self-employment taxes on the line 27.

Generally - that all you needs tax purposes.

Please review all possible deductions - that might help to reduce income tax liability.

Any questions?

Expert:  Lev replied 1 year ago.

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I am here to help you will all tax related issues.