John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Self Employment Tax 

"What if I already pay into social security at my full time job?"

If you contribute to social security as an employee, the wages that you and your employer pay social security taxes towards count towards that wage base ($97,500 for 2007). Accordingly if you paid into social security at your regular job (a W-2 job) on $90,000 of wages, only $7,500 (tax year 2007 #'s) would be subject to the full self employment tax. Similarly if your W-2 job had earnings of $100,000 and the full social security contribution was paid in though that employment, your self employment earnings would only be subject to the Medicare component.