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His State of residence and any State he made income in

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Q: What state does a self employed pay tax?
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Which tax software is best for self-employed tax payers?

TaxCut is great tax software if you're self-employed.


Where can the information about self employed tax be found online?

The IRS website offers a lot of information on self employed tax. They describe "who is self-employed", "what are my obligations to paying taxes if one is self-employed" etc.


What kind of taxes do self employees have to pay?

People who are self-employed have to pay taxes on their income just like people who are employed by a company. They also have to pay a "self-employment tax" that basically makes up for the fact that they haven't been paying FICA taxes.


Do you pay both income tax and self employment tax because you are self employed?

Yes. The "self-employment tax" is actually the Social Security and Medicare tax. If you work for someone else, you would have Social Security and Medicare tax taken out of your paycheck and your employer would match the amounts that were taken out. When you are self-employed, instead of having these amounts taken out of your paycheck, you pay both the employee and the employer share directly to the government.


How can you opt out of paying tax in the UK?

There is a saying about the inevitable, you may have heard it......Death and taxes. Legally there is no way to just "opt out" of paying tax. If you are employed or self employed you will be registered with HMRC and you have to pay tax on earnings.


Do quarterly tax payments for the self employed go the the state or federal gov't?

usually both


What federal taxes does a self-employed person have to pay?

Self-Employed people have to pay income tax just like everyone else, plus self-employment taxes which are basically Social Security and Medicare taxes. A self-employed person will have to pay all of the Social Security and Medicare taxes since they don't have an employer. When you work for someone, the employer pays for half of the Social Security and Medicare taxes in addition to other taxes like federal and state unemployment taxes and other items depending on the state and city you are located in.


How much taxes do i have to pay if im self employed?

In 2009, you will pay the regular state and federal tax rates on all of your income, including your self-employment income. In addition, you will pay a Social Security tax of 12.4% on the first $106,800 of your net self-employment earnings (reduced by other earnings subject to SS) and a Medicare tax of 2.9% of your net self-employment earnings with no limit. You should also investigate whether you need to make quarterly estimated tax payments to avoid possible penalties for underpayment.


Self-employed tax returns?

Same as any other...the source of the income is different. Some different things may be applicable to fill out... Those that are self-employed will have to pay self-employment tax four times a year. This ensures you that you will not have to pay one lump sum at the time your last return is filed. SE tax rate.The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance). Federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. You generally have to make estimated tax payments if you expect to owe tax, including SE tax, of $1,000 or more when you file your return. There are two ways to pay as you go: withholding and estimated taxes. If you are a self-employed individual and do not have income tax withheld, you must make estimated tax payments


Do self-employed people pay FICA?

Yes self employed taxpayers pay taxes on the NET profit of the business operation. The self employment taxes (OASDI) Old Age Survivor and Disability Insurance (FICA) (social security and Medicare taxes) all mean the same tax. If you are a self employed taxpayer then you are responsible for all of your own FICA self employment taxes of 15.3% plus any income taxes on your net profit from your business operation at your marginal tax rate.


Is income tax collected monthly?

In the UK income tax is collected in various ways, if you are employed then the PAYE (pay as you earn) system will collect tax each time you are paid, which is usually weekly or monthly, if you are self employed then income tax will be normally be collected annually when your tax return is processed.


How much do we pay if we have a zazzle shop for tax?

For tax purposes your income from a Zazzle Store will be treated as self employed income which should be declared on your annual tax return. Depending in which country you pay your taxes, Zazzle may have to declare your earnings to the Tax Authorities.