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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 12025
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Need to pay se tax need to know how to calculate it, how to

Customer Question

need to pay se tax need to know how to calculate it
JA: PayPal, Debitcard or credit card are all fine.
Customer: how to calculate
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: line 12 on 1040 was 12000 social security around 10000 medicare I don't know
JA: Is there anything else important you think the Accountant should know?
Customer: no
Submitted: 8 months ago.
Category: Tax
Expert:  emc011075 replied 8 months ago.

Hi. My name is ***** ***** I will be happy to help you.

If you are self employed, you use Schedule SE to figure out your self-employment tax. Self-employment tax is your social security and Medicare tax. You do not calculate it separately. Your self employment tax will be go on line 57.

Customer: replied 8 months ago.
your not helping
Expert:  emc011075 replied 8 months ago.

Can you rephrase you question than? I am not sure what are you asking.

Customer: replied 8 months ago.
I gave you my info and got no answer
Customer: replied 8 months ago.
just answer with the example I gave you
Expert:  emc011075 replied 8 months ago.

First, you do not use line 12 of 1040 to calculate your social security or Medicare tax. You have to use information from schedule C. Second, as small business owner you pay self employment tax, you do not pay social security and Medicare tax separately.

And I do not see any example. I am opting out. I cannot help you like that.

Expert:  Lane replied 8 months ago.

OK different expert here.


SE tax IS how a self-employed individual pays Social Security and medicare, only it'both the employee and employer halves.



Expert:  Lane replied 8 months ago.

And then there's the additional surcharge that Obama added


Self-employment taxes are comprised of two parts: Social Security and Medicare. You will pay 6.2 percent and your employer will pay Social Security taxes of 6.2 percent on the first $118,500 of your covered wages.


You each also pay Medicare taxes of 1.45 percent on all your wages - no limit. If you are self-employed, your Social Security tax rate is 12.4 percent and your Medicare tax is 2.9 percent on those same amounts of earnings but you are able to deduct the employer portion.


You will pay an additional 0.9% Medicare tax on the amount that your annual income exceeds $200,000 for single filers, $250,000 for married filing jointly, and $125,000 married filing separate


SO, if profit from Shedule C is 12000, here's an example

Expert:  Lane replied 8 months ago.

The first number on each line below is Social Security ...and the second line is Medicare

Adjusted' earnings ......................... $12,000 ... $12,000

Less: self-employment adjustment ....$918 ......... $918

Taxable self-employment earnings.......$11,082.......$11,082

Self-employment tax...........................$1,374........$321

Total self-employment tax $1,696

Tax-deductible portion $848

Expert:  Lane replied 8 months ago.

Please Let me know if you have ANY questions, before rating me.

But if this HAS helped, and you don’t have more questions on this, … I would appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

Otherwise I won’t be compensated for the work here.

Thank you!


I have a Law degree with concentration in Tax , Estate & Corporate Law, … an MBA, with specialization in finance … a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.