Fema Employment
Do individuals earning less than the federal poverty level through odd jobs have to pay self-employment tax?
If a person annually earns below the poverty level doing informal work for cash, with no income tax liability, must they pay the 15.3% annual federal self-employment taxes to cover employer social security and medicare payments?
Public Comments
- Yes, you are required to pay self-employment tax on all self-employment income. If the total adjusted gross income is below a certain level (the amount depends on your filing status), then the federal income tax will be zero, but not the SE tax.
- The poverty level has nothing to do with it. If you have self-employment over $400, then you have to pay self-employment tax.
- If you are below poverty level, you can be eligible for EIC. Even without children, if your income is less than $12K and you are between the ages of 25 and 65, you can be eligible.
