Re: SE Tax Maximums?
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What about someone who has a job in which they dont pay ANY social security?
Would I have to pay the full amount of SE tax if I filed as a pro? (Up to $94K in poker winnings) And what exactly is the full percentage? Is it 15%?
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I’ve long since thrown away my tax manuals, but here’s from memory:
All SE tax equals Social Security and medicare. (Combined is 15.3%)
The only reason laborers don’t pay this amt is because employers match half
Out of the 15.3%, Social security is 12.4 percent of all earned income up to approx 94,000
Medicare has no cap and is 2.9% of earned income.
edit - as far as do you have to pay SE on all poker winnings, the answer is yes. But for these purposes winnings are net winnings after losses, less deductions, such as books, computer, applicable travel, etc.
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