After SET – what taxes are owned as a SP
I drive for lyft part time. Over the summer I made $3600, and since I work in Education, ill go back to my normal 9-5 job the rest of the year.
I understand that $3600 is subject to the SET of Med/SS. Say my approx taxes are $498. Do I owe any further taxes on the remaining $3102? or is that added to my w2 income?
For example, say I earn $50k as a teacher in 2018. My actual total income would be $53,102? then with deductions and all that, would then adjust my tax-return if I owe, or am owed money?
Finally, what if I use Quick books Self employed? and I overpay the SET – will this be refunded through my MFJ Tax return?
We don’t give specific tax advice in the forums because individual circumstances vary so widely. For a detailed answer to your question, you should consider contacting a licensed accountant who can look at your specific situation and provide a comprehensive answer.
That said, our understanding is that your Lyft income would be added to your personal tax return just like 1099 income (as opposed to W2 income). Most tax-filing systems include a way for you to add outside income to a salary income.
Once this income is added in, your actual total income may end up being slightly less than $53,102, since there may be additional deductions for using your car for business.
Regarding Quickbooks, to our knowledge, the way this would be entered in QB would not impact whether or not a refund will be issued for an over-payment.
If you’d like to learn more about self-employment taxes and how they can impact overall tax situations, you may want to check out our article on Self-Employment Taxes here: https://fitsmallbusiness.com/self-employment-tax-rates/
Hope this helps. For more information, you should consider working with a licensed tax professional.