Self Employment Tax in Skokie, Illinois

Find the right Self Employment Tax attorney in Skokie, IL

Self Employment Tax Lawyers in Skokie

In Skokie, Illinois, some taxes are levied on employees, and deducted from their paychecks. Most people are cognizant of the Medicare and Social Security taxes - which fund those two programs by taking a small percentage of every paycheck an employee receives.

Individuals who are self-employed are still responsible for these taxes, and are responsible for figuring out how much they owe.

Typically, it's the employer who makes all these calculations, and the employee doesn't have to think about it. Most larger employers have payroll departments to oversee these matters, making it pretty simple for them. But, if you are self-employed, it's up to you to accurately determine what you have to pay in self-employment taxes

Self-Employment tax obligations in Skokie, Illinois

If you are an independent contractor, or run a sole proprietorship (a company which you own, and which is not incorporated as a separate legal entity), you must pay the so-called "self-employment tax" if your income from self-employment is higher than per year.

Workers who are employed by someone else enjoy at least one perk that the self-employed do not: their employer matches their Social Security and Medicare contributions, essentially doubling the amount of money that's contributed to these funds on the employee's behalf.

However, if you are a self-employed business owner in Skokie, Illinois, you are liable for both the employee and employer contributions to Medicare and Social Security. This essentially doubles your self-employment tax rate.

In Skokie, Illinois, 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 further 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%.

Can a Skokie, Illinois Tax Attorney Help?

If you are self-employed in Skokie, it's extremely important for you to be diligent in keeping records of your income and expenses, to ensure that you pay all the self-employment taxes that you owe (and also to make sure you don't over-pay). You may one day need a tax attorney to advise you with a legal issue, and they can help you far more efficiently if you are able to quickly present them with all the relevant information.

With all that said, if you are having difficulty deciding just how much money you owe in Medicare and Social Security taxes from self-employment in Skokie, Illinois, and keep good financial records, it should be relatively easy for a decent tax attorney to help you. And, if you end up facing a more significant legal issue over your self-employment tax liability, a tax attorney may prove to be invaluable.

Talk to a Tax Law Attorney now!

Life in Skokie

The picturesque town of Skokie, Illinois is located just sixteen miles from the state capital of Chicago, and twelve miles from Chicago O'Hare International airport. Comprised of 10.2 square miles, Skokie is a popular town for city workers to live in, and was awarded the Illinois "Governor's Award" as well as being recognized as an "All American City" by the National Civil League.

Out of the entire country, Skokie was the first community to have a nationally accredited fire, police and public works department -- a distinction that places Skokie as a model city to many others inside and outside of the state. With all the awards and attention, it is no wonder that Skokie was named one of the 80 fastest growing suburbs in the nation.

Also on the rise in Skokie are lawyers. Whether working in Chicago or Skokie, local lawyers are skilled in anything a client may need whether it is a high stakes divorce or drafting a simple deed. Many lawyers come from the local law schools in Chicago, including University of Chicago Law School.

Skokie gets its unique name from the Native American term for fire. Skokie is home to the Illinois Holocaust Museum and Education center, and the city's large Jewish population makes it the only Illinois city that has more Jewish schools than Catholic schools. The North Shore Center for Performing arts is located in Skokie and provides the city with many cultural events and concerts every year.

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