Distributions from an S-Corporation generally are not subject to self-employment tax.
Include it in your "income from self-employment.
No all 1099s have taxes to pay on them . You will most likely have to pay self employment social security and medicare .
Yes
To file self employment taxes you must complete a Schedule SE form and attach it to your 1040 form. If you have any employees then you also have to pay employment taxes such as Social Security and Medicare Taxes.
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.
No.
to pay into social seurity and medicare
Include it in your "income from self-employment.
Income to the corporation, as a legal "person", is taxable against the corporation. When the treasury pays dividends from its income to its shareholders, the dividend is taxable again as "income" to the shareholders. A "subchapter S-corporation" avoids this by skipping the corporate taxes and directly taxing the shareholders for any corporate income.
No all 1099s have taxes to pay on them . You will most likely have to pay self employment social security and medicare .
Yes
To file self employment taxes you must complete a Schedule SE form and attach it to your 1040 form. If you have any employees then you also have to pay employment taxes such as Social Security and Medicare Taxes.
The IRS considers income from watching a grandchild as self-employment. The individual should file a schedule C for business income, and pay self-employment tax on the income earned.
"Yes as long as you have earned income from working and are still breathing you will continue to have to pay your self employment taxes on your net profit from your business operation." OK, so I will keep paying self employment tax when collecting full benefits ( I am 66). That is what I figured, but will my monthly SS payment increase since I am still paying into the system? Thanks.
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.
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.
A closely held company is one in which all shares of stock are owned by a small number of people (often related to each other), and a Subchapter S corporation is one that conforms to that subchapter of the U.S. Internal Revenue Code, including closely held corporations (with additional restrictions on nationality, number of shareholders, etc). The benefit of an S-corp is that the entitity income is not taxed separately from the income of the shareholders, so you don't pay income taxes twice. There is certainly no obligation for a close corporation to file for S-corp status, and there may be good reasons not to (e.g., foreign investors).