[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-302397-105":53,"doc-detail-302397-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","self-employment-tax-2020","Self-Employment Tax - 2020","","Self-Employment Tax explains when self-employed taxpayers must pay Social Security and Medicare taxes, starting with the $400 net-earnings threshold for tax year 2020. It details how the two parts are calculated, including maximum Social Security earnings and the lack of a Medicare earnings limit. The guide covers additional Medicare tax, the one-half deduction, Schedule SE computations, and how to claim allowable business deductions.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":36,"@type":70,"position":76},"https://docshare.wps.com/template/forms/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/self-employment-tax-2020/302397/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/self-employment-tax-2020/302397.png","ImageObject",442,249,{"name":88,"@type":89},"Emma Wilson","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-26","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":79},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"Who has to pay self-employment (SE) tax for 2020?","Question",{"text":108,"@type":109},"You pay SE tax when your net earnings from self-employment are $400 or more. You are self-employed if you operate a trade or business as a sole proprietor (including farmers) or as a general partner in a partnership.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"What are the Social Security and Medicare portions of SE tax?",{"text":113,"@type":109},"The Social Security portion is 12.4%, with a 2020 maximum earnings amount of $137,700 subject to the tax. The Medicare portion is 2.9%, and there is no earnings limit for Medicare.",{"name":115,"@type":106,"acceptedAnswer":116},"What is the Additional Medicare tax and how is it reported?",{"text":117,"@type":109},"A 0.9% additional Medicare tax applies to self-employment income over $200,000 (or $250,000 MFJ / $125,000 MFS). It is reported on Form 8959, Additional Medicare Tax.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},302397,1790404726,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":35,"category_name":36,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":79,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":73,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":9},3848291630094,"https://eur-avatar.wpscdn.com/davatar_085a072bc5b1113ac321206ff7593b45","TAX YEAR  \n\n| | 2020\u003Cbr>Self-Employment Tax |\n| --- | --- |\n\nLET’S START A CONVERSATION  \nWe’d love to meet you, talk about your financial goals, and see if we’re the right fit to help you get there.  \n[952.448.4220 | cpa@dha-cpa.com](952.448.4220 | cpa@dha-cpa.com)  \nSelf-Employment Tax  \nWho Pays Self-Employment Tax  \nYou pay self-employment (SE) tax when net earnings from self-employment are $400 or more. You are selfemployed if you carry on a trade or business as a sole proprietor (including farmers) or as a general partner ina partnership. A trade or business generally is an activity carried on for a livelihood or in good faith to make a profit. Facts and circumstances determine whether or not an activity is a trade or business.  \nSelf-Employment Tax  \nSelf-employment tax consists of the taxes paid for Social Security and Medicare. As an employee, the employer pays half of the tax and the other half is deducted from the your pay. By contrast, a self-employed taxpayer must pay both halves of these taxes. If additional Medicare tax is due, it is paid by you and not the employer. See Additional Medicare Tax, below.  \nSocial Security portion. The Social Security portion of self-employment tax is 12.4%.  \nMaximum earnings subject to Social Security tax. The maximum amount of self-employment net earnings subject to Social Security tax for 2020 is $137,700. Medicare portion. The Medicare portion of self-employment tax is 2.9%.  \nMaximum earnings subject to Medicare tax. Unlike the earnings limit subject to Social Security tax, there is no earnings limit for Medicare taxes.  \nAdditional Medicare tax. A 0.9% additional Medicare tax applies to self-employment income over $200,000 ($250,000 MFJ or $125,000 MFS).The Additional Medicare Tax is reported on Form 8959, Additional Medicare Tax.  \nDeduction for self-employment tax. The deduction allowed for self-employment tax is one-half of the selfemployment tax figured on Schedule SE (Form 1040). Percentage of income subject to self-employment tax. Because of the deduction, the percentage of net self-employment income subject to self-employment tax is 92.35%.  \nSchedule SE (Form 1040), Self-Employment Tax.  \nSelf-employment tax is computed on Schedule SE. The deduction for one-half of self-employment tax on Schedule 1 (Form 1040) is also computed using Schedule SE and then reported as an adjustment to income on Schedule 1 (Form 1040).  \nClaim all deductions. The Self-Employment Contributions Act of 1954 requires every taxpayer to claim all allowable business deductions, including depreciation, in computing net earnings from self-employment for SE tax purposes. Penalties apply for making a false statement or representation in connection with any matter arising under the act.  \nExample: Donna is self-employed. After deducting business expenses, her net self-employment income is $100,000. Her SE tax and deduction for one-half of SE tax are computed as follows.  \n1) Self-employment income .................................... $100,000  \n2) Multiply line 1 by 92.35 % ...................................... $92,350  \n3) SE tax. Multiply line 2 by 15.3% ......................... $14,130  \n4) Deduction for one-half of SE tax.  \nMultiply line 3 by 50% ............................................... $7,065 In computing her federal income tax, Donna can deduct $7,065 as one-half of her self-employment tax. In addition to federal income tax, Donna must pay SE tax of $14,130.  \nSelf-Employment Tax Optional Methods  \nYou may use one or both optional methods to compute SE tax if you have a loss or small amount of income. Using an optional method may give credit toward Social Security coverage and may increase certain tax credits. Nonfarm optional method. Use the nonfarm optional method only for earnings that do not come from farming. Qualifications include:  \n• Self-employed on a regular basis (net earnings from self-employment were $400 or more in at least two of the previous three tax years).  \n• Net ","cbCaip97jqQuZFCU","https://ap.wps.com/l/cbCaip97jqQuZFCU","pdf",461166,"English","# Who Pays Self-Employment Tax\n## Self-employment tax components and rates\n## Limits and Additional Medicare Tax\n## Deduction and Schedule SE computation\n## Claiming business deductions and penalties\n## Example calculation\n## Optional methods for computing SE tax\n## Other common self-employment tax situations","[{\"question\":\"Who has to pay self-employment (SE) tax for 2020?\",\"answer\":\"You pay SE tax when your net earnings from self-employment are $400 or more. You are self-employed if you operate a trade or business as a sole proprietor (including farmers) or as a general partner in a partnership.\"},{\"question\":\"What are the Social Security and Medicare portions of SE tax?\",\"answer\":\"The Social Security portion is 12.4%, with a 2020 maximum earnings amount of $137,700 subject to the tax. The Medicare portion is 2.9%, and there is no earnings limit for Medicare.\"},{\"question\":\"What is the Additional Medicare tax and how is it reported?\",\"answer\":\"A 0.9% additional Medicare tax applies to self-employment income over $200,000 (or $250,000 MFJ / $125,000 MFS). It is reported on Form 8959, Additional Medicare Tax.\"}]","Self-Employment Tax - 2020 | PDF",1789792508]