What You Need to Know About Indiana Self-Employment Tax in 2020
1. How much is the self employment tax for Indiana?
Indiana self employment tax is 15.3%, with 12.4% dedicated to social security, old-age, survivors, and disability insurance, and 2.9% for Medicare or hospital insurance.
2. How much do I owe in self employment tax to the government?
Indiana self employment tax is calculated in two parts. For 2020, the first $137,700 of your net earnings is subject to the Social Security part of Indiana self employment tax. The 2.9% Medicare portion is applied to all your combined net earnings. If you have a family business or are in partnership with your spouse, the Indiana self employment tax requirements may vary.
3. When do I have to pay taxes?
With no employer to withhold taxes, you need to look after tax payment requirements on your own by making quarterly estimated tax payments. Payments should be made on:
- April 15th
- June 15th
- September 15th
- January 15th
4. What forms do I need to file taxes?
Payments can be made electronically with Form 1040-ES, Estimated Tax for Individuals. You will need your prior year’s tax return or you’ll have to estimate the amount of income you expect to earn for the year.