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#7
12-22-2003, 10:02 PM
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 Re: Self employment tax esther8850[at]hotmail.com (Ronald) wrote: - quote - > "Barney Bird" <barney_bird[at]msn.com> wrote:
There is NO cap on the Medicare tax, whether imposed on wage> > "Ronald" <esther8850[at]hotmail.com> wrote: > > > What is the self emploment tax rate for 2003. > > > Is there a maximum "Self Employment Tax" for any one year. > > > Example (a) : net income is $50,000 - how much is due, > > > Example (b) : net income is $275,000 - how much is due. > > The self-employment (SE) tax rate is 15.3% for 2003- this > > rate has been in effect since about 1987. The 15.3% gross > > rate breaks down as follows: > > > * 12.4% Old Age & Survivors Disability Insurance (OASDI) > > * 2.9% Medicare Insurance > > > For 2003, the first $87,000 of SE income ($87,900 for 2004) > > is subject to the 12.4% OASDI rate. > > > Every dollar of SE income is subject to the 2.9% Medicare > > tax, or stated differently, there is no compensation ceiling > > for the Medicare tax as there is for OASDI. > > > SE tax is figured on Schedule SE. After carrying the net SE > > income to Schedule SE, you reduce it by .9235. > > > Example a: $50,000 X .9235 X .153 = $7,065 > > > Example b: $87,000 X .124 = $10,788 > > $275,000 X .9235 X 2.9% = 7,365 > > Total SE Tax $18,153 > Thank you for a precise explanation to my question. By any > chance does Medicare Tax cease at any age limit, ie: 65 > years or older or age makes no difference. earnings (1.45% for taxpayer and employer) or 2.8% for the self employed. Age is not a factor. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#6
12-22-2003, 09:23 PM
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| Re: Self employment tax "Ronald" <esther8850[at]hotmail.com> wrote: - quote - > Thank you for a precise explanation to my question. By
Age is irrelevant both for SE and Medicare tax.> any chance does Medicare Tax cease at any age limit, > ie: 65 years or older or age makes no difference. Barney Byrd << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#5
12-22-2003, 07:47 PM
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| Re: Self employment tax Ronald <esther8850[at]hotmail.com> wrote: - quote - > While there is no income limit on the 2.9% Medicare tax, by
No chance at all. No age limit.> any chance is there an age limit, ie: 65 years old or ? __ Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
12-19-2003, 01:21 PM
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| Re: Self employment tax "Barney Bird" <barney_bird[at]msn.com> wrote: - quote - > "Ronald" <esther8850[at]hotmail.com> wrote:
Thank you for a precise explanation to my question. By any> > What is the self emploment tax rate for 2003. > > Is there a maximum "Self Employment Tax" for any one year. > > Example (a) : net income is $50,000 - how much is due, > > Example (b) : net income is $275,000 - how much is due. > The self-employment (SE) tax rate is 15.3% for 2003- this > rate has been in effect since about 1987. The 15.3% gross > rate breaks down as follows: > * 12.4% Old Age & Survivors Disability Insurance (OASDI) > * 2.9% Medicare Insurance > For 2003, the first $87,000 of SE income ($87,900 for 2004) > is subject to the 12.4% OASDI rate. > Every dollar of SE income is subject to the 2.9% Medicare > tax, or stated differently, there is no compensation ceiling > for the Medicare tax as there is for OASDI. > SE tax is figured on Schedule SE. After carrying the net SE > income to Schedule SE, you reduce it by .9235. > Example a: $50,000 X .9235 X .153 = $7,065 > Example b: $87,000 X .124 = $10,788 > $275,000 X .9235 X 2.9% = 7,365 > Total SE Tax $18,153 chance does Medicare Tax cease at any age limit, ie: 65 years or older or age makes no difference. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
12-19-2003, 01:02 PM
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| Re: Self employment tax "Barney Bird" <barney_bird[at]msn.com> wrote: - quote - > "Ronald" <esther8850[at]hotmail.com> wrote:
Thank you for a precise explanation to my question. By any> > What is the self emploment tax rate for 2003. > > Is there a maximum "Self Employment Tax" for any one year. > > Example (a) : net income is $50,000 - how much is due, > > Example (b) : net income is $275,000 - how much is due. > The self-employment (SE) tax rate is 15.3% for 2003- this > rate has been in effect since about 1987. The 15.3% gross > rate breaks down as follows: > * 12.4% Old Age & Survivors Disability Insurance (OASDI) > * 2.9% Medicare Insurance > For 2003, the first $87,000 of SE income ($87,900 for 2004) > is subject to the 12.4% OASDI rate. > Every dollar of SE income is subject to the 2.9% Medicare > tax, or stated differently, there is no compensation ceiling > for the Medicare tax as there is for OASDI. > SE tax is figured on Schedule SE. After carrying the net SE > income to Schedule SE, you reduce it by .9235. > Example a: $50,000 X .9235 X .153 = $7,065 > Example b: $87,000 X .124 = $10,788 > $275,000 X .9235 X 2.9% = 7,365 > Total SE Tax $18,153 chance does Medicare Tax cease at any age limit, ie: 65 years or older or age makes no difference. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
12-19-2003, 11:46 AM
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| Re: Self employment tax "Barney Bird" <barney_bird[at]msn.com> wrote: - quote - > "Ronald" <esther8850[at]hotmail.com> wrote:
While there is no income limit on the 2.9% Medicare tax, by> > What is the self emploment tax rate for 2003. > > Is there a maximum "Self Employment Tax" for any one year. > > Example (a) : net income is $50,000 - how much is due, > > Example (b) : net income is $275,000 - how much is due. > The self-employment (SE) tax rate is 15.3% for 2003- this > rate has been in effect since about 1987. The 15.3% gross > rate breaks down as follows: > * 12.4% Old Age & Survivors Disability Insurance (OASDI) > * 2.9% Medicare Insurance > For 2003, the first $87,000 of SE income ($87,900 for 2004) > is subject to the 12.4% OASDI rate. > Every dollar of SE income is subject to the 2.9% Medicare > tax, or stated differently, there is no compensation ceiling > for the Medicare tax as there is for OASDI. > SE tax is figured on Schedule SE. After carrying the net SE > income to Schedule SE, you reduce it by .9235. > Example a: $50,000 X .9235 X .153 = $7,065 > Example b: $87,000 X .124 = $10,788 > $275,000 X .9235 X 2.9% = 7,365 > Total SE Tax $18,153 any chance is there an age limit, ie: 65 years old or ? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
12-17-2003, 09:24 AM
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| Re: Self employment tax "Ronald" <esther8850[at]hotmail.com> wrote: - quote - > What is the self emploment tax rate for 2003.
The self-employment (SE) tax rate is 15.3% for 2003- this> Is there a maximum "Self Employment Tax" for any one year. > Example (a) : net income is $50,000 - how much is due, > Example (b) : net income is $275,000 - how much is due. rate has been in effect since about 1987. The 15.3% gross rate breaks down as follows: * 12.4% Old Age & Survivors Disability Insurance (OASDI) * 2.9% Medicare Insurance For 2003, the first $87,000 of SE income ($87,900 for 2004) is subject to the 12.4% OASDI rate. Every dollar of SE income is subject to the 2.9% Medicare tax, or stated differently, there is no compensation ceiling for the Medicare tax as there is for OASDI. SE tax is figured on Schedule SE. After carrying the net SE income to Schedule SE, you reduce it by .9235. Example a: $50,000 X .9235 X .153 = $7,065 Example b: $87,000 X .124 = $10,788 $275,000 X .9235 X 2.9% = 7,365 Total SE Tax $18,153 Barney Byrd << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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12-17-2003, 08:07 AM
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| Re: Self employment tax "Ronald" <esther8850[at]hotmail.com> wrote: - quote - > What is the self emploment tax rate for 2003.
There two components to the SE tax: Social Security [at]> Is there a maximum "Self Employment Tax" for any one year. > Example (a) : net income is $50,000 - how much is due, > Example (b) : net income is $275,000 - how much is due. 12.40%, and Medicare [at] 2.90% for a combined rate of 15.3%. Your SE net income is first multiplied by 92.35% before calculating the tax. Social Security Tax is levied on the first $87,000 x 92.35%. Medicare Hospital Insurance is levied on all of your SE net income x 92.35%. On $50,000: $7,065 SE Tax On $275,000: $17,328 Don in Colorado << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
12-15-2003, 01:44 PM
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| Self employment tax What is the self emploment tax rate for 2003. Is there a maximum "Self Employment Tax" for any one year. Example (a) : net income is $50,000 - how much is due, Example (b) : net income is $275,000 - how much is due. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| employment, tax |
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