The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Self Employment Tax||Date: 4/30/2013 2:33 PM|
|Author: ptheland||Number: 118559 of 121144|
Since my contracted gross income is about $120K, I know I have to pay federal tax on the social security and retirement but is it subject to the self employment tax as well?
I'm surprised Phil didn't drag out Sister Mary Severe and keeping antecedents straight. I'm not sure what income you are referring to with the pronoun "it" in your sentence.
So let's just cover all of the bases.
Your contract income is subject to self employment tax. (It's also questionable whether that contract income should be anything other than wages, but that's a different question and one you didn't ask.)
Social security and your retirement income are not subject to self employment tax.
They are all subject to federal income tax.
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