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Social Security taxes - Zoe


Posted: Jan 11, 2011

This is my first year to work solely as an IC.  I have been sending quarterly taxes in to the IRS using the form 1040 payment vouchers they supplied.  It has just occurred to me that I don't know if any of the money I am sending in is going to Social Security tax.  I am not sure how it is allocated.  I send in 25-30% of my earnings.  Can anyone with more knowledge about this help me understand?  Thanks so much! 

taxes - hi

[ In Reply To ..]
You are taxed a flat rate for self-employment taxes and this covers social security. Since you are paying quarterly taxes, you should be fine. If you have anything left (HA), you can put a percentage of your yearly earnings in a SEP account (Self-employment pension) and this helps reduce your taxes also. Better to pay yourself than Uncle Sam, although you can't touch it until retirement.


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