Tax Season Tips for the Self-Employed, Social Security Recipients 

Taxes are due on Tuesday, April 15, 2025. Tenere Robertson, owner of T. Robertson & Associates, LLC provides personal and business tax preparation; accounting and payroll services; tax planning; and business formation services. The Towson, Maryland firm serves clients in Maryland, Virginia and the DC Area. T. Robertson & Associates, LLC also assists clients and nonprofits in all 50 states. Robertson answered three important questions about filing 2024 taxes.

Q: Is it a good idea to file even though your income is below the filing requirement?

A: If you worked a job and had federal and state taxes withheld from your wages in 2024, and you made less than the filing requirements of $14,600, you should still file a tax return in 2025. At minimum you will get all the federal and state taxes withheld from your wages refunded to you. If you are between the ages of 25 to 65, you may qualify for earned income credit up to $632 even if you do not have any dependents for tax year 2025. It’s always a great idea to consult with a tax advisor to see what additional credits, if any, you may qualify for.

Q: What are some options for paying taxes for self-employed people who do not have

taxes withheld?

A: If you are self-employed and have an income of more than $400, you are required to file a tax

return. You are considered a self-employed person if you carry on a trade or business as a sole

proprietor, single member LLC, or an independent contractor for a profit. A self-employed

person may or may not receive a 1099-NEC for work performed, as a company is not required to

issue a 1099 unless your wages were more than $600. Whether you receive a 1099-NEC or not

should not be a deciding factor as to whether you report your self-employed income. If you know you made money working as a contractor, no matter the amount, it should be reported. As a self- employed individual (sole proprietor or single member LLC) to report your earnings and expenses, you will attach a Schedule C to your personal tax return. 

As a self-employed individual, not only are you the worker but normally you are the “HR Department” as well, which means you are responsible for making sure you are paying taxes on your earnings throughout the year. As a self-employed individual you pay two taxes on each dollar of net profit—15.3 % self-employment tax (which consists of the employers and employee’s social security and Medicare payments) and your regular tax liability which ranges from 10-37%. The IRS recommends that you try and figure out your estimated earnings for the year, which you can do by using form 1040-ES.

If you find that you will owe more than $1,000 for the year, then you must pay quarterly estimated tax payments. The first payment of the year is due April 15; the second payment is due June 15; the third payment, Sept 15; and the fourth and final payment is due January 15 of the following year.

For your convenience, you can mail form 1040-ES in, or you can choose to file electronically via

the EFTPS system [The Electronic Federal Tax Payment System], direct pay, or by credit card over the phone or on the internet. To use the EFTPS system you must enroll online and wait for a pin to be mailed to you. By using one of the electronic methods, you reduce your chance of error or lost payment, and you get confirmation right away to keep with your records.

Q: Tell me about 2024 tax rules on social security income.

A: Social security benefits can be 0%, 50% or 85% taxable. Social security benefits are typically not taxable if that is the only form of income the taxpayer receives. They will still receive an SSA-1099 but will not be required to file a tax return. To determine if a taxpayer’s social security is taxable, we will compare a base amount ($25,000 or $32,000 married filing jointly) with the

total of one-half of the benefits plus all other income to include tax-exempt interest. These

amounts have not changed for 2024 and are exactly the same as 2023. There is a worksheet that is used to determine if the benefits are partially taxable and if that amount will be 50% or 85%. Taxpayers that are married filing jointly must combine their income and social security benefits to determine if any of their combined benefits are taxable.

Taxes are not one size fits all, so what works for your coworker, or your neighbors may not work for you. It is always best to consult with a tax advisor to discuss your unique tax situation. For every tax law there are several different outcomes based upon the filing status, income, and age of the taxpayer. Proper tax planning is essential if you really want to limit your tax liability, but you can’t effectively do that if you only meet/speak with your accountant/tax advisor once a year. It is recommended that you meet with your accountant/tax advisor quarterly so that together you can come up with a plan for your unique tax situation as life changes happen.

Visit https://www.facebook.com/1829TRA to learn more about T. Robertson & Associates.
Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as professional tax advice. Every individual’s tax situation is unique, and the content presented may not apply to your specific circumstances. We recommend consulting with a qualified tax professional or financial advisor before making any decisions based on the information provided. The author and publisher are not responsible for any errors, omissions, or actions taken based on the information in this article.