How Do You Pay Medicare Taxes When Self Employed?
Although Medicare contributions are usually collected in the form of payroll tax withholding, self-employed workers are not absolved of the requirement to make their own contributions to Medicare based on their net earnings. The IRS provides Schedule SE for taxpayers to report net earnings in excess of $400 per year and meet Medicare and other payroll tax obligations. Fill out and file Schedule SE to calculate and pay your Medicare tax liability for your net earnings of over $400 when self employed. List your net farm profit or loss, from line 36 of Schedule F or box 14, code A of Schedule K-1, on line 1 of Section A-Short Schedule SE. Enter your business net profit or loss on line 2. You may reference your net profit or loss on line 31 of Schedule C, line 3 of Schedule C-EZ or either box 14, code A or box 9, code J1 of Schedule K-1. Add lines 1 and 2 and enter the sum on line 3 to total your net business profit or loss. Calculate your net earnings from self employment by multiplying l
