Self Employment Tax in Chanhassen, Minnesota

Find the right Self Employment Tax attorney in Chanhassen, MN

Self Employment Tax Lawyers in Chanhassen

In Chanhassen, Minnesota, 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.

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

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 Chanhassen, Minnesota

If you work as an independent contractor, or operate a sole proprietorship, you are deemed to be "self employed." You are required 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 considerable 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 basically doubles your contribution to these programs, without doubling their financial burden on you.

But, if you're self employed in Chanhassen, Minnesota, or anywhere else, you are obligated to make the employee AND employer contributions to Social Security and Medicare, basically doubling your employment tax liability.

Self-employed workers in Chanhassen, Minnesota pay a self-employment tax rate of 15.3% of their income that's derived from self-employment. But, half of whatever they end up paying in self-employment tax is deductible from income tax. This basically creates a tax deduction of nearly 8% of one's income, requiring you to only pay taxes on 92% of what you earn. Further 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 Chanhassen, Minnesota Tax Attorney Help?

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

Anyone having difficulty with figuring out what they owe in self-employment taxes in Chanhassen, Minnesota should seek the help of a seasoned tax attorney. Most tax attorneys also have a good understanding of accounting, so making this determination probably won't be too hard for them. And on top of that, a qualified tax attorney can give you objective and useful legal advice, which can help prevent more egregious issues from forming in the future.

Talk to a Tax Law Attorney now!

Life in Chanhassen

Chanhassen, Minnesota is a city of about 25,000 residents that straddles the Counties ofCarver and Hennepin.

Chanhassen is the site of a famous arboretum, which features several acres of beautiful horticultural exhibits, and a few miles of trails to view the area, which can be driven or walked.

The city of Chanhassen, Minnesota strongly emphasizes the value of outdoor recreation, and has a large number of parks, hiking trails, and natural open spaces. There are many lakes in the region, and several of them have publicbeaches which are very popular in the summer months, among residents and visitors alike.

There is a network of over 70 miles of hiking trails in Chanhassen, many of which cut through extremely scenic areas, with beautiful views. Furthermore, the town's lakes are very productive, making them great fishing areas. The city also has a skate park in its downtown area.

There are plenty of lawyers in Chanhassen, Minnesota to meet whatever legal needs you might have. Although they practice in a relatively small community, Chanhassen, Minnesota lawyers are competent to handle a wide range of legal problems. Whatever legal problem you or a loved one is facing, chances are that there's at least one Chanhassen, Minnesota lawyer who can help you out.

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