Self Employment Tax in Wasilla, Alaska

Find the Right Lawyer Now

In Wasilla, Alaska, there are particular taxes that are enforced on employees, which are deducted from their paychecks. The generally 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 critical to note that if you are self-employed, you're still accountable for those taxes, and it's your responsibility to figure out what you owe.

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

Self-Employment tax obligations in Wasilla, Alaska

If you mainly work as an independent contractor, or are the owner of a sole proprietorship, you have to pay what's usually referred to as the "self-employment tax," if your annual income from self-employment is over $400.

For normal employees, Social Security and Medicare payments are made in equal parts by the employee and employer. This basically means that every employee's contribution to his or her future Medicare and Social Security benefits is matched by the employer.

But, the self-employed in Wasilla, Alaska are responsible for making the employer AND employee contributions to those programs, basically doubling what they would have to pay if they were employed by someone else.

The self-employment tax rate is 15.3% of all self-employment income, assuming your income from self-employment exceeds $400 per year in Wasilla, Alaska. But half of your self-employment tax liability can be deducted from your income tax. This results in a slightly reduced income tax bill, which partially offsets this additional tax burden. It essentially means that the self-employment tax only applies to 92% of your income, as opposed to all of it. This means that your effective self-employment tax rate is about 14%, as opposed to over 15%.

Find a Wasilla Lawyer that Specializes in Your Area of Need:

Can a Wasilla, Alaska Tax Attorney Help?

If you're self-employed in Wasilla, you need to keep complete 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 simpler for a tax attorney to give you good, useful advice, should you eventually need it.

That said, if you are encountering trouble figuring out clearly how much self-employment tax you owe in Wasilla, Alaska, a competent tax attorney shouldn't have any trouble helping you on that front. Likewise, if you end up in a dispute with the government over your self-employment tax requirement, a good tax attorney can give you the best possible chance of getting a favorable result.

2 Tax Law cases posted to LegalMatch lawyers in Wasilla

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.

Tax Law Lawyer
LegalMatch Tax Law Lawyer Andrew D.

Andrew D.

Tehama, AK

Tax Law

Rating (2 users) *****
See Reviews
Tax Law Lawyer
LegalMatch Tax Law Lawyer Tax Defense N.

Tax Defense N.

Los Angeles West, AK

Tax Law

Rating (2 users) *****
See Reviews
Personal Injury Lawyer
LegalMatch Personal Injury Lawyer Ralph G.

Ralph G.

Sumter, FL

Personal Injury

Rating (1 users) *****
See Reviews
Real Estate, Housing & Property Law Lawyer
LegalMatch Real Estate, Housing & Property Law Lawyer Jonathan C.

Jonathan C.

Kings, NY

Real Estate, Housing & Property Law

Rating (4 users) ****
See Reviews

Need a Lawyer?

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