Results 1 to 3 of 3
  1. #1
    Join Date
    Jun 2011
    Posts
    2

    Default 1099 and Social Security Taxes

    My question involves employment and labor law for the state of: OHIO

    Hi

    I am on w2 for 1st of half of this year. I would reach Social security contribution limit for this year soon. I am getting another job where I may go into 1099 or c2c for rest of year and even longer hopefully. This would be my 1st time on 1099. I understand that i need to make estimated tax payments quarterly on 1099. I guess some tax software would help me to figure that out.(Any, any suggestions for 1st timer 1099, very ,much appreciate!!).

    My quesion is, do I need to pay social security tax after going into 1099? I am sure my excess ss contribution would be ok, as it can get adjusted in tax return, but not sure about double contribution would get refunded(employee+employer 15% odd).. Any idea if I have to make double ss tax payment or I dont need to as I reached contribution limit

    Thank you

    Jigra

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: 1099 and Social Security Taxes

    You can just run the 1040 SE schedule to get the actual answers. Essentially, the 6.2% that would be the "employees" share of the SE tax plus what you paid as SS tax on your employeee wages do apply together to meet the $108K cap. You do have to pay the other half until you get the to the cap on just SE wages.

  3. #3
    Join Date
    Jun 2011
    Posts
    2

    Default Re: 1099 and Social Security Taxes

    Thanks flyingron

    Just to confirm, as I have reached social security contribution limit on w2 with a employer and after switching to another employer and working as 1099, I may not need to pay approx 15% for SE taxes... Is that correct ?

    Also can you recommend any tax prep software for 1099 folks, especially 1st timer like me. Any general suggestion on 1099 or c2c choice, very much appreciated. I know each one would have its pros/cons and devil is in detail, but any comment, insight would be helpful

    Thank you

    1. Sponsored Links
       

Similar Threads

  1. Survivors Benefits: Social Security Survivors Benefit and Taxes
    By rsullivan in forum Social Security Law
    Replies: 1
    Last Post: 04-18-2011, 07:37 PM
  2. Disability Benefits: Social Security Disability and Independent Contractor (1099) Work
    By musician in forum Social Security Law
    Replies: 1
    Last Post: 03-31-2011, 08:28 PM
  3. Social Security Issues: Social Security Quarters: is It Possible to Pay into Social Security
    By marilynn lightner in forum Social Security Law
    Replies: 2
    Last Post: 01-14-2011, 06:43 AM
  4. Replies: 1
    Last Post: 04-08-2010, 03:23 PM
  5. Debt Collectors: Social Security Overpayment And Taxes
    By DC79 in forum Debts and Collections
    Replies: 2
    Last Post: 03-02-2008, 09:58 AM
 
 
Sponsored Links

Legal Help, Information and Resources