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Tax Deduction Consulting: Social Security Deductions Brigham City UT

Self employed workers are required to pay a Self Employed Workers Tax (SE) that is 15.3% of their income. This is for the FICA taxes as well and, at first glance, it appears they are paying twice as much as an employed worker. This is because the employer is paying an additional 7.65% for their employees. Read on for more.

Karen J. Arthur
(801) 661-1800
2120 Roosevelt Ave
Salt Lake City, UT
Specialties
Business, Corporate, Social Security, Estate Planning
State Licensing
Washington

Randy M. Lish
(801) 235-9400
2155 N. Freedom Blvd.
Provo, UT
Specialties
Social Security, Estate Planning, Elder Law
State Licensing
Utah

Maynard C V Tax Service
(435) 723-7566
524 N 300 E
Brigham City, UT
 
Block H & R Income Tax Service
(435) 723-6971
102 N Main St
Brigham City, UT
 
Jackson Hewitt Tax Service
(801) 553-1040
10425 S State St
Sandy, UT
 
Craig V. Wentz
(801) 355-3431
15 W South Temple Ste 800
Salt Lake City, UT
Specialties
State, Local And Municipal Law, Social Security, Government, Real Estate, Land Use & Zoning, Litigation
State Licensing
Washington

Daniel Mccandless Olson
(801) 933-8911
136 South Main Street, Suite 1000
Salt Lake City, UT
Specialties
Business, Social Security
Education
Harvard University
State Licensing
Texas

Hadley Tax Service
(435) 723-0515
521 S 100 W
Brigham City, UT
 
C & M Tax Service
(801) 466-1948
1825 S 700 E
Salt Lake City, UT
 
A Aable Tax & Accounting Inc
(801) 226-7222
595 W 800 N
Orem, UT
 

Tax Deduction Consulting: Social Security Deductions

Maximum Social Security Deduction

A discussion of the maximum social security deduction would most often center on self employed workers. Employed workers are not allowed to use social security taxes as an itemized deduction.

The Government does not trust us to pay our taxes at the end of each year and so we are on a pay as you go basis. This is the reason for pay roll deductions. New workers are always a little shocked when they get their first paycheck and discover the amount they are actually paid is considerably less than they actually earned. The difference is the Federal, State, and FICA taxes that are withheld from your pay. These taxes are withheld by the employer and sent to the IRS each quarter. The FICA deduction, which includes both social security tax and Medicare tax, amounts to 7.65% of your earnings. There is no maximum social security deduction when computing this withholding figure.

There is, however, a limit on the social security portion. You are only required to pay this tax on the first $97,500 of income each year. If you are fortunate enough to be earning over this amount, the tax will no longer be deducted once the limit is reached. The social security portion of the FICA tax equals 6.2%. The other 1.45% for Medicare has no income limit at all. You continue to pay it regardless of income limit.

Self employed workers are required to pay a Self Employed Workers Tax (SE) that is 15.3% of their income. This is for the FICA taxes as well and, at first glance, it appears they are paying twice as much as an employed worker. This is because the employer is paying an additional 7.65% for their employees. In order to create a bit of parity for the self employed worker who is stuck with the entire amount, 50% of his social security and Medicare taxes may be taken as an itemized deduction when he files his tax return.

The employed worker is not allowed to deduct his FICA taxes from his taxable income as an itemized deduction. Since certain ...

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