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Tax Deduction Consulting: Social Security Deductions Washington DC

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.

Carissa Jeanine Suarez
(202) 942-6145
555 12th St Nw
Washington, DC
Specialties
Business, Antitrust, Social Security, Litigation
Education
Tulane University
State Licensing
DC, Texas

Chad Boudreaux
(202) 639-1119
1299 Pennsylvania Avenue Nw
Washington, DC
Specialties
Social Security, Litigation, Immigration
State Licensing
DC

Kristy L. Easter
(202) 551-6253
Mail Stop 0903, 450 5th St Nw
Washington, DC
 
Amy Sandra Lee
(202) 624-2863
1001 Pennsylvania Avenue Nw
Washington, DC
Specialties
Health Care, Litigation, Social Security
State Licensing
DC

Joseph Mark Saka
(202) 383-6752
1299 Pennsylvania Ave., Nw., Howrey Llp
Washington, DC
Specialties
Social Security, Litigation
Education
Catholic University of America
State Licensing
Texas

Frederick William Reynolds III
(202) 353-1566
1400 New York Ave. Nw, Rm 10404
Washington D.C., DC
Specialties
Appeals, Business, Antitrust, Criminal Defense, Social Security, Administrative Law, Intellectual Property, International Law, Litigation
Education
Emory University
State Licensing
Texas

Pamela Heather Kesner
(202) 551-4853
United States Securities & Exchange Com, 100 F Street Ne
Washington, DC
Specialties
Business, Social Security, Administrative Law, Landlord & Tenant, Litigation
Education
Georgetown University
State Licensing
DC, Texas

William Bradley Nes
(202) 739-5779
1111 Pennsylvania Avenue, Nw
Washington, DC
Specialties
Social Security, Litigation
Education
University of Texas
State Licensing
Texas

John William Guidroz
100 F St., N.E.
Washington, DC
 
Deborah Robinson
(717) 801-0514
Record Industry Assoc of Amer, 1025 F St Nw
Washington, DC
Specialties
Social Security, General Practice, Juvenile
State Licensing
Pennsylvania

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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