Self Employment Tax in Anchorage County, Alaska

Find the Right Lawyer Now

In Anchorage County, Alaska, there are specific taxes that are placed on employees, which are deducted from their paychecks. The typically well-known employment taxes are the Medicare and Social Security tax, for which a small percentage of every employee's paycheck is deducted.

It's crucial to note that if you are self-employed, you're still responsible for those taxes, and it's your responsibility to figure out what you owe.

Most frequently, employers handle all of these calculations. With regular salaried and hourly employees, this is an easy process, and any decent payroll computer software can do it automatically. However, if you work for yourself, it is your responsibility to figure out precisely what you owe.

Self-Employment tax obligations in Anchorage County, Alaska

If you work as an independent contractor, or operate a sole proprietorship, you are deemed to be "self employed." You are obliged to pay the self-employment tax if your total income from self-employment exceeds $400 per year.

For people who are employed by another person or company, the employer typically matches the employee's contributions to Medicare and Social Security. This essentially means that, when you look at your Medicare and Social Security tax statements on your paychecks, you can know that those programs are actually getting double what's shown there - with your employer covering the other half.

However, if you're self employed in Anchorage County, Alaska, or anywhere else, you are obliged to make the employee AND employer contributions to Social Security and Medicare, essentially doubling your employment tax liability.

In Anchorage County, Alaska, self-employed business owners pay a self-employment tax rate of 15.3%. This is, of course, separate from, and additional to, whatever they pay in income tax. In an effort to partially offset this additional tax burden, half of what one pays in self-employment taxes can be deducted from their income when filing their income taxes. This means that the self employed pay income taxes on, at most, 92% of their income. And it's probably less, thanks to all the other deductions they might qualify for. This deduction lowers the effective self-employment tax rate to 14%, rather than the "official" rate of over 15%.

Find a Anchorage County Lawyer that Specializes in Your Area of Need:

Can a Anchorage County, Alaska Tax Attorney Help?

If you're self-employed in Anchorage County, you need to keep accurate records of all your income and expenses from the operation of your business. This will make it much easier for you to calculate your taxes when they come due, and it will make it easier for a tax attorney to give you good, useful advice, should you eventually need it.

Thus, if you have some trouble figuring out what you owe in self-employment taxes, for whatever reason, chances are good that a knowledgeable tax attorney in Anchorage County, Alaska can advise you with much trouble, and can provide you with good legal and financial advice, which can help you head off much more significant legal and financial issues.

Self-Employment Tax Attorneys in the Largest AK Cities

Show Alaska Cities

Self-Employment Tax Lawyers in Other Alaska Cities and Towns


Find the Right Lawyer Now

Top Rated Lawyers

View attorney profiles and see how other LegalMatch users rate attorneys that may respond to your case.

General Practice Lawyer
LegalMatch General Practice Lawyer Chris P.

Chris P.

CAMERON, TX

General Practice

Rating (1 users)
See Reviews
Employment and Labor Law Lawyer
LegalMatch Employment and Labor Law Lawyer Howard S.

Howard S.

FORT BEND, TX

Employment and Labor Law

Rating (1 users)
See Reviews
Business - Transactional Lawyer
LegalMatch Business - Transactional Lawyer Andrew J.

Andrew J.

TALBOT, MD

Business - Transactional

Rating (1 users) *****
See Reviews
Employment and Labor Law Lawyer
LegalMatch Employment and Labor Law Lawyer John D.

John D.

ESSEX, MA

Employment and Labor Law

Rating (14 users) *****
See Reviews

Need a Lawyer?

No obligation - Lawyers compete for your case. Choose your issue & get started now: