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Tax Law (Questions About Taxes)/When you owe money to the IRS, do they include state taxes?


This year, I was employed as a typical (non-contract) employee, but I also worked as an independent contractor, as well as working on Amazon's Mechanical Turk. According to Mechanical Turk, I am considered to be "self-employed" by them, but it doesn't seem that they are sending me a 1099. Still, I have counted that income on my 1040.

As this is the first year I have ever received non-taxed income, I did not pay estimated or quarterly taxes. According to my 1040, I owe about $775 to the IRS. But I am concerned about other taxes that would traditionally be deducted from a paycheck, like Medicare, SSI, and state taxes. Will paying that money to the IRS settle the issue, or do I somehow owe other money to the state? (For reference, I live in Pennsylvania.) Thank you so much for your time and expertise!

The IRS does not collect or process state taxes or state tax returns. That is the sole purpose of the state tax authorities.

Medicare and Social Security for self-employeds is computed on your 1040 and is also part of your federal tax amount due to the IRS. This can be found on Schedule SE

If this is your first year filing, then there is no penalty for not paying estimated taxes. Estimated taxes are due when you expect to earn enough to generate more than $1000 in tax.  

Tax Law (Questions About Taxes)

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Randall Klein, MBA, EA


I am an expert in personal and small business taxation, including Forms 1040, 1120, 1120S, 1065. I can answer any type of tax question except those that are requesting help in illegal tax evasion. Tax avoidance is legal, however. I do not do offshore trusts, or opt-out of the tax system type of queries.


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