Self Employment Tax in Abilene, Texas

Find the right Self Employment Tax attorney in Abilene, TX

Self Employment Tax Lawyers in Abilene

In the U.S., including in Abilene, Texas, taxes are imposed on employees, which are typically deducted from their paychecks. The ones that most people are familiar with are the Medicare and Social Security taxes. The idea is that workers pay into these programs during their entire working lives, and then enjoy the benefits they provide once they retire.

It's extremely important to know that, if you are self-employed, you still have to pay those taxes, and it's also up to you to figure out precisely how much you owe, to ensure that you don't pay more or less than you are obliged to.

Typically, it's the employer who does all the calculations, determining what deductions need to be made from a worker's paycheck to cover his or her tax liability. But if you are your own boss, you have to do this, and ensure that your figures are accurate.

Self-Employment tax obligations in Abilene, Texas

If you derive even a small percentage of your income from running your own business, or working as an independent contractor, you have to pay the "self-employment tax." This tax applies to everyone who makes more than per year from self-employment.

Persons who are not self-employed, and work for another person or company, have their contributions to Medicare and Social Security matched by their employers. This means that these programs are getting, on your behalf, twice as much money as what's deducted for your paycheck, with your employer covering the other half.

However, if you are self-employed in Abilene, Texas, you are responsible to pay both the employee and employer share of the employment tax. Essentially, this means that the employment tax for self-employed individuals is double what it would be for regular employees.

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 Abilene, Texas exceeds . However, half of this tax is deducted from your income, for income tax purposes. Thus, 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, essentially, the self-employment tax rate is only 14%, as opposed to 15.3%

Can a Abilene, Texas Tax Attorney Help?

If you work for yourself in Abilene, you have to stay on top of your self-employment taxes, to avoid facing significant legal and financial issues later on. This means you need to keep reliable 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.

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

Talk to a Tax Law Attorney now!

Life in Abilene

Abilene, Texas is a city in Taylor and Jones Counties. It has a population of approximately 118,000 people, and is the county seat of Taylor County.

Abilene, Texas was founded in 1881 by cattlemen, as a shipping point on the Texas and Pacific Railway, which was beginning to link faraway parts of the country with one another.

Modernly, Abilene, Texas is a vibrant, thriving community, with many notable residents. For example, an Abilene, Texas attorney named Sarah Weddington lives in the city. She represented "Jane Roe" in the case of "Roe v. Wade," which resulted in the legalization of abortion nationwide.

Of course, there are many other capable and accomplished attorneys in Abilene, Texas, who just don't happen to be famous. However, if you are in need of any type of legal services, it's very likely that a lawyer in Abilene, Texas can help.

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