[VanMan]

Would someone please tell me how I am to pay social security and medicare? I just started driving a van for an owner and I am quite confused how I go about paying social security, and medicare.Where do I go for this? Thanks!!:-)

[Fkatz]

Hi, Vanman

In answer to your question about SS & Medicare, the only way that you are going to pay these items since you will be paid on a 1099 Misc. for this year in January, would depend on weather you make any gross profit on the Schedule C, that will be made out for 2003 tax year.
If you make a profit the amount on Line 31 of the Schedule C the SS & Medicare % portion will be figured on SCH SE Form inturn it will be carried over to line 56 on Sch 1040 page 2, If you owe tax that would be the way it is paid.

Social Security and Medicare at 15.6% are based on your income, weather it be on a W-2 where it is taken out each week, or on a Sch C. sole properitor where it is paid in lump sum only. that is if any.

Normally if you drive for an owner, remember you may take the mileage (if you pay for fuel), Tolls, and diem pay deduction that you are allowed. plus any items that you are not reimbursed for.

Any other information that you made need, please do not hesitate to ask.


Frank Katz
Frank's Tax Service