Self Employment Tax in Texas City, Texas

Find the right Self Employment Tax attorney in Texas City, TX

Self Employment Tax Lawyers in Texas City

In the U.S., including in Texas City, Texas, taxes are placed on employees, which are usually 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 required 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.

Most often, employers handle all of these calculations. With regular salaried and hourly employees, this is an easy process, and any decent payroll computer software can do it automatically. However, if you work for yourself, it is your responsibility to figure out exactly what you owe.

Self-Employment tax obligations in Texas City, Texas

If you work as an independent contractor, or operate a sole proprietorship, you are deemed to be "self employed." You are obligated to pay the self-employment tax if your total income from self-employment exceeds per year.

People 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 acquiring, on your behalf, twice as much money as what's deducted for your paycheck, with your employer covering the other half.

But, self-employed workers in Texas City, Texas must make both the employee and employer contributions. So, 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 Texas City, Texas exceeds . However, half of this tax is deducted from your income, for income tax purposes. So, 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, effectively, the self-employment tax rate is only 14%, as opposed to 15.3%

Can a Texas City, Texas Tax Attorney Help?

If you're self-employed in Texas City, you need to keep thorough records of all your income and expenses from the operation of your business. This will make it much easier for you to calculate your taxes when they come due, and it will make it easier for a tax attorney to give you good, useful advice, should you eventually need it.

With all that said, if you are having difficulty determining just how much money you owe in Medicare and Social Security taxes from self-employment in Texas City, Texas, and keep good financial records, it should be relatively easy for a decent tax attorney to help you. And, if you end up facing a more serious legal issue over your self-employment tax liability, a tax attorney may prove to be invaluable.

Talk to a Tax Law Attorney now!

Life in Texas City

Texas City has a population of 43,000 and is located in Galveston County, Texas. It is one of the busiest deepwater port cities located in the Texas Gulf Coast area. The Port of Texas City is the eighth largest port in the nation and Texas' third largest port.

Texas City's economy has traditionally been supported by both shipping and heavy industry. Industries include petroleum production and petrochemical refining. The Texas City Industrial Complex located in the city is a leading producer in the petrochemical market. Recently city planning has diversified the economy to include other sectors like health care and tourism.

In addition to its industrial presence, Texas City is known for its beautiful parks and wildlife preserves. Many parks are part of the "Great Texas Coastal Birding Trail", where one can see large flocks of birds in spectacular numbers. Favorite parks to visit are Bay Street Park and Nessler Park. Nessler Park is the site for the city's annual "Music Fest by the Bay".

Texas City lawyers can assist you by filing legal claims with the Texas City Municipal Court. The municipal court is authorized to oversee a variety of legal issues. Lawyers in Texas City, Texas provide legal services which meet the unique demands of the city's economy.

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