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Thread: estimated tax vs self employment taxes

  1. #1

    Default estimated tax vs self employment taxes

    in NJ, SE taxes , are owed if you make over $400 with your own business activity

    is this SE tax taken care of once a year, during doing your yearly tax return? or is this an ongoing thing ?

    i had paid once, an estimated tax to NJ last year assuming i will make enough from side actviities but i couldnt and my estimated tax turndd out to be unnecessary. for the most part. i owe very little to NJ now. which my estimated tax will cover. does estimated tax and SE tax are same things, i mean are they apples to apples?

  2. #2
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    In GA, I pay estimated taxes quarterly. I expect it's similar in NJ, but the fastest way to be sure is to call the state department of revenue and ask them (and ask them what state form needs to be included with it).

    SE tax is the other half of payroll taxes (Medicare and Social Security) that are normally paid by an employer. Since you don't have an employer, you get to pay them. In addition to the half you pay regardless of whether you work for yourself.

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