Quick tax question that someone might be able to answer

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CLKeenan

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Jun 24, 2006
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Do I need to pay self employment tax if I had a full time job for part of the year? I'm assuming yes, but i just want to get an idea. I wish my college offered a tax class, I strangely find this stuff interesting.
 


It's not strange to find it interesting (I don't think so...I find it interesting). I'd have to see it in black and white to be 100% sure, but I am about 99% sure that yes, you do still need to pay self-employment tax.
 
And what if I had a full time job throughout the year... could I mark it down as supplemental income?

edit: thanks for the reply btw
 
yes, you'll need to pay self-employment taxes. Of course, your tax preparer/accountant can advise you properly.
 
As said before, you're liable for all income that you earn, full time, part time, piecemeal, gambling income, windfall, even found money.

Basically, if you earned $600 or more from any single income source, you have to claim it. However, if you earned $599 from an affiliate program, its up to you to mention it.
 
I think it is determined by the % you made on your own vs. what you made at your job
 
the purpose of self-employment taxes is to pay the fica (social security, medicare taxes) that would normally be taken out of your W2 income. There are fica limits...so if you make so much W2 income that hit those limits, then you may not be liable. Check with your accountant.
 
100% yes b/c I doubt you were overpaying by that much from W-2. Accountant time!
 
from the IRS web site:

Self-Employment Tax

The self-employment tax rate on net earnings remains the same for 2006. This rate, 15.3%, is a total of 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).
The maximum amount subject to the social security part for tax years beginning in 2006 has increased to $94,200. All net earnings of at least $400 are subject to the Medicare part.
Click to expand...
 
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