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Tax Deduction Consulting: Social Security Deductions Hockessin DE

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.

Leo J Boyle
(302) 994-1300
5197 West Woodmill Drive, Suite 26
Wilmington, DE
Specialties
Personal Injury, Bankruptcy, Estate Planning, Criminal Defense, Real Estate, Social Security
Education
Widener University School of Law,University of Delaware
State Licensing
Delaware

Randall Selagy
(610) 444-6880
150 Beverly Drive
Kennett Square, PA
Specialties
Social Security
Education
Law School : Syracuse University


Data Provided by:
David J Lyons
(302) 777-5698
1526 GILPIN AVENUE, P.O. BOX 579
Wilmington, DE
Specialties
Workers Compensation, Social Security, Personal Injury
State Licensing
Delaware

Gary C Linarducci
(302) 613-0707
910 W. Basin Road, Suite 100
New Castle, DE
 
Angela Marie La Manna
(856) 678-6700
220 N BROADWAY
PENNSVILLE, NJ
Specialties
Personal Injury, Workers Compensation, Criminal Defense, Social Security, Medical Malpractice
Education
Widener University School of Law,West Chester University of Pennsylvania
State Licensing
New Jersey

Angela L Ross
(800) 632-9230
1202 Kirkwood Highway
Wilmington, DE
Specialties
Social Security, Personal Injury
Education
Widener University School of Law,Drexel University
State Licensing
Delaware

F. Randall Selagy
150 BEVERLY DR
KENNETT SQUARE, PA
 
Steven L Butler
(302) 613-0707
910 W. Basin Road, Suite 100
New Castle, DE
 
Steven Butler
(302) 325-2400
910 W Basin Rd Ste 100
New Castle, DE
Specialties
Social Security
Education
Undergraduate : University of Delaware
Law School : Widener University
Admitted To Bar : 2003

Data Provided by:
Karin Michelle Wood
(856) 678-6700
220 N BROADWAY
PENNSVILLE, NJ
Specialties
Personal Injury, Social Security, Medical Malpractice, Criminal Defense, Workers Compensation
Education
College of New Jersey,Rutgers University School of Law
State Licensing
New Jersey

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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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