Self Employment Tax in College Station, Texas

Find the right Self Employment Tax attorney in College Station, TX

Self Employment Tax Lawyers in College Station

In the U.S., including in College Station, Texas, taxes are levied on employees, which are usually deducted from their paychecks. The ones that most people are acquainted 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 exactly how much you owe, to confirm that you don't pay more or less than you are required to.

In most cases, employers make all the necessary calculations to determine how much needs to be deducted from an employee's check to pay these taxes. It's usually very simple, and any decent payroll software can automate this process. But the self-employed are responsible for figuring this out for themselves, or hiring an accountant to do it.

Self-Employment tax obligations in College Station, Texas

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.

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, effectively 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 College Station, Texas, you are responsible for both the employee and employer contributions to Medicare and Social Security. This essentially doubles your self-employment tax rate.

Currently, the self-employment tax rate in the United States is 15.30% of all income earned from self-employment in College Station, Texas. Nonetheless, half of your hypothetical self-employment tax liability can be deducted from your income. This means that you only pay self-employment tax on about 92% of your income, which creates an effective self-employment tax rate of just over 14%.

Can a College Station, Texas Tax Attorney Help?

Self-employed individuals in College Station must ensure that they keep good, thorough financial records. This makes it much easier to determine what you owe, and, if you need a tax attorney, it makes it easier for them to help you with your legal tax issues.

If you have any difficulty calculating your self-employment tax liability, an experienced College Station, Texas tax attorney would likely have very little trouble assisting you figure it out. A reputable lawyer can also give you practical legal advice, which can help you avoid more egregious tax law issues in the future, by dealing with them before they become problematic.

Talk to a Tax Law Attorney now!

Life in College Station

College Station is located in Brazos County, in the eastern central part of Texas. College Station is located near Houston, Dallas and San Antonio. Per the 2010 census, the population of the city is 93,857 people.

College station is recognized because it is home to Texas AM University. In fact, the city is a quaint college town! Along with the university, other popular sites include the D.A. "Andy" Anderson Arboretum and the George Bush Presidential Library.

Famous past residents include Sara Alpern, Robert A. Calvert, David M. Lee, Ross King, R.C. Slocum, Robert Gates, Tiffany Thornton, and Brek Shea.

College Station residents, being near some of Texas's largest cities, have easy access to the top-tier firms located in those cities. These surrounding cities have well-experienced, excellent attorneys that practice in many areas of law. Thus, any legal need of College Station residents and local businesses will not be unattended to.

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