Self Employment Tax in Lansing, Michigan

Find the right Self Employment Tax attorney in Lansing, MI

Self Employment Tax Lawyers in Lansing

In Lansing, Michigan, some taxes are imposed 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.

But what if you're self-employed? You're still required to pay these taxes, since you will also be eligible for those retirement programs. It's also your responsibility to determine what your tax liability is.

Typically, the employer makes all the necessary calculations and deductions from a person's paycheck. If you are self-employed, however, you are required to make this determination, and to ensure that it's accurate.

Self-Employment tax obligations in Lansing, Michigan

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 greater than 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.

But, if you are a self-employed business owner in Lansing, Michigan, you are responsible for both the employee and employer contributions to Medicare and Social Security. This basically doubles your self-employment tax rate.

The total self-employment tax (note that this is completely distinct from the income tax) is set at 15.3%, if your income from self-employment in Lansing, Michigan exceeds . However, half of this tax is deducted from your income, for income tax purposes. So, this means that, at most, the self-employed only have to pay income on 92% of their total income, and that amount may be lowered with additional deductions for which you may be eligible. This means that, effectively, the self-employment tax rate is only 14%, as opposed to 15.3%

Can a Lansing, Michigan Tax Attorney Help?

If you are self-employed in Lansing, it's essential that you keep good records of your income and expenses, because a tax attorney will only be able to help you to the extent that you help yourself.

If you have any difficulty calculating your self-employment tax liability, an experienced Lansing, Michigan tax attorney would probably have very little trouble helping you figure it out. A good lawyer can also give you practical legal advice, which can help you avoid more serious tax law issues in the future, by dealing with them before they become problematic.

Talk to a Tax Law Attorney now!

Life in Lansing

Lansing, Michigan is the capital of the state of Michigan. It currently has a population of approximately 115,000 people, making it the 5th largest city in Michigan. It is located in Ingham and Eaton Counties.

Lansing, Michigan is home to the largest law school in the U.S. - Thomas M. Cooley School of Law. Many Lansing, Michigan attorneys went to this university, and returned to Lansing to practice. It is also home to the Michigan State University School of Law, which is ranked among the top 100 law schools in America, meaning that there are many prestigious lawyers practicing in Lansing, Michigan.

These universities are also among the largest employers in Lansing, Michigan, employing people in a wide range of professions, such as teaches and administrators, as well as custodial personnel.

If you live in Lansing, Michigan and need an attorney, there's an excellent chance that you'll be able to find the Lansing, Michigan lawyer who can help you with your legal issue.

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