Monday, November 5, 2007

How does an indie pay social security tax?

June --

I am self-employed with no employees, however I am interested in paying something into the system toward social security benefits for myself in the future. What tax form do I fill out to get started?

Jane from Baltimore, MD


Hello Jane,


Every self-employed who has a net profit of $400 or more pays into social security when she files her tax return.The amount is figued on Schedule SE: Self-Employment Tax. Social security is part of self-employment [SE] tax.

-- June

1 comment:

Eric said...

Thanks for the tip June. Readers might also be interested to know that under the pretext of law enforcement, the Social Security Administration has terminated the benefits of thousands of harmless retired and disabled Americans.

The Mental Health Project of the Urban Justice Center recently released "Social Insecurity: How the Social Security Administration's 'Fugitive Felon Program' Harms Disabled, Retired, and Poor Americans Without Aiding Law Enforcement." The report is available at www.urbanjustice.org/ujc/projects/mental.html