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1099 & fica

Posted by Michie1 (My Page) on
Sat, Aug 14, 04 at 17:06

My father & I were having a discussion about whether a 1099 independent contractor is responsible for paying their own social security (FICA) tax on their annual income tax (1040). He says, "no" & I say that you do have to. If I'm correct, is the percentage the 7.65 like you'd pay as an employee or is it double that since you don't have an employee to match it?

Follow-Up Postings:

RE: 1099 & fica

Yes, you do pay it. It is called Self-employment tax and you pay all 15%. But you get to deduct half of it from your gross income. See schedule C.

RE: 1099 & fica

Nancy is correct. I've owned a business & you do have to pay the entire 15%. The form for reporting it is Schedule SE. You deduct the 1/2 that you pay on Line 28 of your 1040.

Here is a link that might be useful: Schedule SE

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