self-employment and social security taxes

[readytorock]

Sorry if this is a dumb question but, when I pay my federal and state taxes, the social security and medicare taxes are included in that right? Or do I have to file something separate from my 1040 to pay social security and medicare?

I just started working form home two months ago, I'm putting away 20% of my income for taxes and I'm paying my estimated taxes (17% to the Feds, 3% to the state). Do I need to do anything else?

[momof1in150]

You have to pay your Social Security taxes when you file your taxes on your NET income:

If You Are Self-Employed

It is not pretty - "The Social Security tax rate for 2008 is 15.3 percent on self-employment income up to $102,000. If your net earnings exceed $102,000, you continue to pay only the Medicare portion of the Social Security tax, which is 2.9 percent, on the rest of your earnings."

[readytorock]

Right, but I pay that to the Federal Government on my 1040 right? It's not a separate thing I need to file or pay anywhere else?

(I have a part-time job as well that pays Medicare and Social Security out of my check, and I always get a refund every year, this is my first time working form home on top of that check.)

[momof1in150]

You file a Schedule SE (Self-Employment Tax) when you file your 1040

[noppenbd]

Originally Posted by readytorock

Right, but I pay that to the Federal Government on my 1040 right? It's not a separate thing I need to file or pay anywhere else?

(I have a part-time job as well that pays Medicare and Social Security out of my check, and I always get a refund every year, this is my first time working form home on top of that check.)

Just to be totally clear, your share of Social Security/Medicare is paid as part of your federal tax bill when you have self-employment income (through Schedule SE). You do not have to file anything with the SS office.

[sweeps]

To clarify further, if you are making more than a trivial amount of self-employment income, you will likely have to make quarterly payments to the IRS. Check 1040-ES.

[maat55]

I'm also self-employed and pay in quarterly on a 1040-ES Estimated tax payment voucher. Just send in about 25% of your self-employed income at your local bank. You do not need to file a 1040 until you file your year end taxes. You will file an schedule SE for this income in addition to your 1040.

http://www.irs.gov/pub/irs-pdf/f1040es.pdf?portlet=3