Question

Enter Your Expected Wages

Forum|Forum|5 years ago
April 8, 2021
1 reply
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This may sound very ignorant but can anyone tell me what I would enter on line 6 of the "2020 Self-Employment Tax and Deduction Worksheet for Lines 1 and 9 of the Estimated Tax Worksheet"

6. Enter your expected wages (if subject to social security tax or the 6.2% portion of
tier 1 railroad retirement tax)...

DaveF1006

It depends. To clarify, are you self-employed or a W2 wage earner? if you are a wage-earner, You wouldn't enter anything in "2020 Self-Employment Tax and Deduction Worksheet for Lines 1 and 9 of the Estimated Tax Worksheet"

if you are a W2 wage earner, you will estimate your yearly salary and multiply it by .0765 to estimate your FICA Taxes for the year.

If you are self-employed, You must enter in Line 1 the amount of the expected income you expect to make during the year. To determine your SE tax, you will multiply your expected income by (.9235)(.153). if you make $50,000 during the year, to determine your SE tax you will perform the following calculation.

$50,000(.9235)(.153) = $7065. Line 9 is where you will put this number. Just remember, if you are not self-employed, you will not complete this section on the worksheet.

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