Re: Self Employment Tax for Aged Social Security Recipient
Re: Self Employment Tax for Aged Social Security
Recipient
Source: http://newsgroups.derkeiler.com/Archive/Misc/misc.taxes/2007−03/msg00418.html
• From: JimC
• Date: Tue, 13 Mar 2007 22:16:45 GMT
Phil Marti wrote:
"JimC" wrote:
I'm retired and receiving Social Security payments along with taxable 401K
withdrawals, pensions, etc. Last year I decided to do some part−time work as
a consultant/attorney and received additional income of several thousand
dollars. Business expenses related to the part−time work were minimal. I
understand that I'm now required to pay Self Employment Taxes (about 15%
of about 94% of the net part−time earnings).
Correct. You report your income and expenses on Schedule C of the 1040. The bottom line of
that flows to Schedule SE, where you compute self−employment tax.
In addition, I understand that I have to add at least a portion of the net Self
Employment Income to the total income reported on my personal (joint)
income tax return. I understand that the amount to be added to my personal
income for the year is 50% of the net part−time earnings. −
You got confused somewhere along the line. The bottom line of Schedule C goes to line 12 of
the 1040 intact. You're probably thinking of the deduction for 50% of the self−employment
tax, which appears on line 27 of the 1040.
Thanks for the clarification. Since our standard deduction (married, both over 65) is so large, we don't itemize,
so it sounds like I will get no benefit from the deduction.
Re: Self Employment Tax for Aged Social Security Recipient 1
Re: Self Employment Tax for Aged Social Security Recipient
Jim
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Re: Self Employment Tax for Aged Social Security Recipient 2