Maryland self employment tax applies to the earnings withdrawn from a Maryland business. You can deduct business expenses from income to determine the amount of earnings and the amount owed in Maryland self employment tax, which is currently set at 15.3%.
The Maryland self employment tax comprises two parts: 12.4% paid to Social Security, applied to the first $137,700 of your net earnings; and 2.9% paid to cover Medicare, applied to all your combined net earnings. There are some differences if you file as a married couple in a partnership, or if you have family working for you.
Maryland self employment tax must be estimated and paid quarterly:
Maryland self employment tax is paid using the federal form, known as Form 1040-ES, Estimated Tax for Individuals. You will need your previous year’s income tax return, or you’ll have to estimate your annual earnings in order to complete the form.
Bonsai Tax is built exclusively for self-employed workers to track expenses, maximize tax write-offs, and estimate quarterly taxes.
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