Temporary Decrease in Self Employment Taxes

Did you know for 2011 the FICA portion of self-employment tax has decreased 2% for 2011?  The temporary rate is 10.4% (down from 12.4%) up to the social security limit of $106,800 on net earnings from self-employment.  If you expect to owe at least $1,000 in tax  for 2011 after taxes withheld, you are generally  expected to pay quarterly estimated tax payments.  If you base your quarterly estimated tax payments on 90% of the tax expected to be shown on your 2011 tax  return, you may be able to reduce your quarterly estimated tax based on your net income from self-employment by the 2% temporary FICA tax reduction.  Consult your tax advisor to see if you can reduce your quarterly estimated tax payments.