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Question: Does a US citizen, nurse, over 21 who received a 1099 misc have to pay social security?

US citizen, over 21, worked in US and received 1099 misc from company she worked for. Does she have to pay social security?

Answer: Yes. If you are self-employed -- which you are if your income is reported on Form 1099-MISC -- you must file Form 1040 and attach Schedule C or C-EZ to calculate your net self-employment income. If that net income exceeds $400 you must attach Schedule SE to calculate the self-employment tax. When you're self-employed you pay both halves of the Social Security and Medicare taxes so the effective tax rate is close to 15% instead of the usual 7.65% that employees pay.

COUNCIL APPROVES AUDIT FUNDS

The Pine Bluff City Council voted unanimously and without discussion at its Monday meeting to allocate $87,104 from undesignated funds to cover the back payroll and independent contractor taxes it owes the Internal Revenue Service from 2007 and 2008.

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