Self-Employment Tax 2012 CalculatorUse this calculator to
estimate your self-employment taxes for 2012. Normally these taxes are
withheld by your employer. However, if you are self-employed, operate a
farm or are a church employee you may owe self-employment taxes. This
calculator uses 2012 tax tables and should not be used for estimating
2011 self-employment taxes. (Please note that the 2012 self-employment
tax is 10.4% for the FICA portion and 2.9% Medicare. The FICA rate was
reduced from 12.4% as part of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010. The FICA portion of the
self-employment tax is scheduled to revert to 12.4% in 2013.)
Definitions
- Net farm income or loss
- This is your
net farm income or loss. This should include both the net farm profit
or loss from Schedule F along with any income from farm partnerships.
Please note that if your gross farm income is $6,720 or less and your
net farm income is $4,851 or less there is a "Farm Optional Method" for
calculating income subject to self-employment taxes. If you qualify for
this optional method it may produce a slightly lower income subject to
self-employment taxes. This calculator assumes that you will not use
the "Farm Optional Method". For more information see IRS Schedule SE
Part II, Optional Methods to Figure Net Earnings.
- Net business income or loss
- This is
your net income from businesses and partnerships. These amounts are
reported on IRS Schedule C for sole proprietorships and IRS Schedule K-1
for partnerships. Do not include any farm partnerships; this income
should be included in the net farm income or loss.
In most cases you
will need to pay self-employment taxes on salaries received for services
performed as a minister. This also includes the rental value of a home
and the value of meals and lodging provided to you, your spouse and your
family. Include income received for services performed as a minister
in your "net business income or loss", do not include it in "Church
employee income". There are a number of exceptions for ministers and
members of religious orders, in regards to self-employment tax
liability. Please see the detailed instructions for self-employment
taxes as provided by the IRS to determine how these rules might apply to
your specific situation.
- Self-employment income
- This is your
total income subject to self-employment taxes. This is calculated by
taking your total "net farm income or loss" and "net business income or
loss" and multiplying it by 92.35%. This is done to adjust your net
income downward by the total employment tax that would have been paid by
an employer, had you not been self-employed. If the result is less than
$400.00, you do not owe any self-employment tax on this income.
- Church employee income
- If you have more
than $108.28 in church employee income, you will need to pay
self-employment taxes on that income. This does not include any income
you received as a minister, which was entered above.
- Net church employee income
- This is your
total church income subject to self-employment taxes. Like your other
self-employment income, this total is calculated by multiplying your
church employee income by 92.35%. If this amount is less than $100, you
do not owe any self-employment taxes on this income.
- Employer paid income
- Enter your total
employment wages and tips that you have been paid where social security
taxes have been deducted. In 2012, income up to $110,100 is subject to
the 10.4% tax paid for the Social Security portion of self-employment
taxes (FICA). Your employment wages and tips should have a 4.2%
deduction for Social Security from your pay, and an additional 6.2%
payment from your employer that does not appear on your paycheck. If
your total wages, tips and self-employment income exceed $110,100 you
only owe social security on the difference between your self-employment
income and $110,100. If your total employment wages and tips exceed
$110,100 in 2012 you will not owe any additional FICA taxes for the
year.
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