If you are a Florida small business owner, independent contractor, or otherwise self-employed, it’s important to note that you may be liable for self-employment taxes. Generally, the term self-employment tax refers to the Social Security and Medicare taxes for taxpayers who are self-employed. Self-employed individual should calculate and report your self-employment tax on Schedule SE of their form 1040.
Typically, any Florida resident with net earnings over $400 who is self-employed will be liable for self-employment tax. Most taxpayers will be able to deduct the employer-equivalent portion of their self-employment tax from their adjusted gross income. Nevertheless, the self-employment tax rules generally apply no matter your age and whether or not you are already receiving Social Security or Medicare.
As always, you should consider contacting a qualified Florida tax attorney to assist you if you have any questions. For more information, see https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes