Self Employment Tax in Richardson, Texas

Find the right Self Employment Tax attorney in Richardson, TX

Self Employment Tax Lawyers in Richardson

In the U.S., including in Richardson, Texas, taxes are levied on employees, which are normally 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.

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.

Normally, it's the employer who does all the calculations, deciding 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 confirm that your figures are accurate.

Self-Employment tax obligations in Richardson, Texas

If you own a sole-proprietorship, or work mainly as an independent contractor, you need to pay the "self-employment tax" if you derive any considerable amount of income from self-employment. You must pay these taxes if your income from self-employment is more than annually.

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

Self-employed workers in Richardson, Texas 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 Richardson, Texas Tax Attorney Help?

Self-employed individuals in Richardson must ensure that they keep good, complete 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 assist you with your legal tax contentions.

Therefore, if you have some trouble figuring out what you owe in self-employment taxes, for whatever reason, chances are good that a reliable tax attorney in Richardson, Texas can assist you with much trouble, and can provide you with good legal and financial advice, which can help you head off much more severe legal and financial issues.

Talk to a Tax Law Attorney now!

Life in Richardson

With a population of just 100,000 residents, Richardson, Texas is one popular place to live. Located in Dallas and Collin Counties, Richardson comprises 28.6 square miles and is easily accessible from the Dallas Fort Worth airport. Business Week recently recognized Richardson as one of the top cities to raise kids in Texas.

Known as the "Telecomm Corridor," Richardson is home to over 5,000 thriving businesses, many of which are the world's top telecommunications providers including: ATT, Verizon, Cisco Systems, Samsung, and Fujistsu. Not surprisingly, Richardson has been ranked one of the top cities to work for commuters.

In addition to telecommunications, Richardson is also home to some top lawyers. Trained locally and out of state, Richardson lawyers are some of the best in the business and enjoy living and working in the wonderful city of Richardson. Richardson lawyers are skilled in a range of practice areas and always available to help their local client with whatever legal issue he or she is dealing with.

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