What You Need to Know About Maryland Self-Employment Tax in 2020
1. How much is the self employment tax for Maryland?
Maryland self employment tax applies to the earnings withdrawn from a Maryland business. You can deduct business expenses from income to determine the amount of earnings and the amount owed in Maryland self employment tax, which is currently set at 15.3%.
2. How much do I owe in self employment tax to the government?
The Maryland self employment tax comprises two parts: 12.4% paid to Social Security, applied to the first $137,700 of your net earnings; and 2.9% paid to cover Medicare, applied to all your combined net earnings. There are some differences if you file as a married couple in a partnership, or if you have family working for you.
3. When do I have to pay taxes?
Maryland self employment tax must be estimated and paid quarterly:
- April 15th
- June 15th
- September 15th
- January 15th
4. What forms do I need to file taxes?
Maryland self employment tax is paid using the federal form, known as Form 1040-ES, Estimated Tax for Individuals. You will need your previous year’s income tax return, or you’ll have to estimate your annual earnings in order to complete the form.