So I wanted to check with those working in America about how you do tax withholdings? I understand Federal tax and and State but what about Social Security, Medicare and in Ohio we have city taxes as well. Are we to be paying a portion for them? If so, does anyone know how that's done? I didn't earn much last year and I declared it on my Federal and State taxes but I want to be sure I haven't screwed up somewhere along the way. Thanks!!
Following this thread because I am trying to figure out taxes too! Because I am solely self-employed, I know I have to file everything myself and have to pay social security/medicare/etc, but I'm still pretty confused on how it all works.
I buy TurboTax home and business. It takes care of Federal - medicare,Medicaid and has state also. Many cities are linked to the state return (i.e. you don't file. They extract it out of state return. For example NY City and NY state are interlinked). Even if they were not linked most city taxes are simple enough.
If it were possible for a freelancer to upload their consciousness to the Upwork servers, and exist purely as a disembodied intelligence... then theoretically they could avoid paying taxes. They would only need to pay Upwork service fees.