Self Employment Tax in Mckinney, Texas

Find the right Self Employment Tax attorney in Mckinney, TX

Self Employment Tax Lawyers in Mckinney

In the U.S., including in Mckinney, Texas, taxes are imposed on employees, which are normally 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.

But what if you're self-employed? You're still obligated 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.

Usually, 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 Mckinney, Texas

If you primarily work as an independent contractor, or are the owner of a sole proprietorship, you have to pay what's commonly referred to as the "self-employment tax," if your annual income from self-employment is over .

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, self-employed workers in Mckinney, Texas must make both the employee and employer contributions. Therefore, this means that the Medicare and Social Security tax liabilities apply doubly to the self-employed.

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

Can a Mckinney, Texas Tax Attorney Help?

If you are self-employed in Mckinney, 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 Mckinney, Texas should seek the help of a brilliant 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 serious issues from forming in the future.

Talk to a Tax Law Attorney now!

Life in Mckinney

McKinney is located in Collin County, Texas. It has a population similar to Plano, Texas. McKinney is home to around 131,100 people.

An interesting fact is that in 2007 McKinney is ranked as the second fastest growing city. CNN Money Magazine included it in its list of "Best Places to Live in the U.S."

Top employers include McKinney Independent School District, Wal-Mart, Lattimore Materials, Blockbuster Entertainment Group, Medical Center of McKinney, Torchmark Corporation, and Encore Wire. The legal industry also has a presence in McKinney because many well-established and experienced lawyers have made a home in McKinney. Therefore, residents and businesses have competent attorneys to handle their legal issues.

Overall, this is a great city to visit or live in!

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