Self Employment Tax in Hyattsville, Maryland

Find the right Self Employment Tax attorney in Hyattsville, MD

Self Employment Tax Lawyers in Hyattsville

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

It's essentiall to be aware of one fact: if you're self-employed, you still have to pay these taxes. And it's your responsibility (or the responsibility of someone you hire for this purpose) to figure out exactly how much you owe.

Most often, 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 exactly what you owe.

Self-Employment tax obligations in Hyattsville, Maryland

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

Employees in a regular employer/employee relationship do enjoy one significant perk that the self-employed do not: their Social Security and Medicare contributions are matched by their employers. So, if you pay in Social Security and Medicare taxes with every paycheck, your employer has to match that. This effectively doubles your contribution to these programs, without doubling their financial burden on you.

However, if you're self employed in Hyattsville, Maryland, or anywhere else, you are required to make the employee AND employer contributions to Social Security and Medicare, effectively doubling your employment tax liability.

Self-employed workers in Hyattsville, Maryland pay a self-employment tax rate of 15.3% of their income that's derived from self-employment. However, half of whatever they end up paying in self-employment tax is deductible from income tax. This effectively creates a tax deduction of nearly 8% of one's income, requiring you to only pay taxes on 92% of what you earn. Additional tax deductions may lower that number further. When this deduction is taken into account, the self-employment tax rate is effectively 14%, as opposed to over 15%.

Can a Hyattsville, Maryland Tax Attorney Help?

If you work for yourself in Hyattsville, you have to stay on top of your self-employment taxes, to avoid facing serious legal and financial issues later on. This means you need to keep excellent records of all your income and expenses, in case you need to seek the advice of a tax attorney: the more information you can provide your lawyer, the better he or she can help you.

So, if you have some trouble figuring out what you owe in self-employment taxes, for whatever reason, chances are good that a qualified tax attorney in Hyattsville, Maryland can help you with much trouble, and can provide you with good legal and financial advice, which can help you head off much more serious legal and financial issues.

Talk to a Tax Law Attorney now!

Life in Hyattsville

Named after Christopher Clarke Hyatt in 1860, Hyattsville, Maryland is home to close to 15,000 residents.Hyatsville provides its population with easy access to both Washington and Baltmiore, Hyattsville is located in Prince George's County, Maryland.

The small population does not mean that there are a lack of good lawyers in Hyattsville. Raning from family law to employment issues, to everyday legal issues, Hyattsville lawyers are skilled in a range legal areas ready to help their neighbors with whatever he or she may find themselves facing. Hyattsville also has friendly neighborhoods, top schools, and an active population contributing to the overall charm of the East Coast city.

A portion of the city of Hyattsville was placed on the National Registry ofHistoric Placesfor the many beautiful historic sites the city has to offer. Hyattsville is also home to a variety of industries including: manufacturing, retail, and real estate. There are also many summer attractions including outdoor summer concerts, outdoor movies showing classics, and many well-kept neighborhood parks putting on activities. Hyattsville is a city that has perfected the small-town charm in a big way.

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