Is line 8A on Schedule SE supposed to include combined or individual wages when filing jointly with spouse?

Thanks for explaining! So just to double check - if my W-2 wages are $85,000 and my husband's are $75,000, we would each fill out separate Schedule SE forms and only put our individual W-2 amounts on line 8A, right? Even though combined we're over the threshold, since individually we're under, we'd both owe the full Social Security portion of self-employment tax on our side gig income?

That's exactly right. You would each complete your own Schedule SE using only your individual W-2 wages on line 8A. Since neither of you individually exceeds the Social Security wage base limit with your W-2 income, you would both owe the full Social Security portion of self-employment tax on your respective side gig income. The Social Security wage limit applies individually per person, not jointly as a couple. This is true even when filing a joint return. It's one of those areas where marriage doesn't change how the calculation works.

Does taxr.ai handle other self-employment tax questions too? I'm confused about how much of my health insurance premiums I can deduct as a part-time freelancer who also has a W-2 job with benefits.

I'm a bit skeptical about using AI for tax help - how accurate is it really? Seems like it could miss nuances that a human tax pro would catch. Did you verify their advice with an actual accountant?

Yes, taxr.ai definitely handles other self-employment tax questions! They can analyze your specific situation with health insurance premiums and tell you exactly what portion is deductible based on your mix of W-2 and freelance income. They break down the calculations so you understand why. Their accuracy is actually impressive. I did verify with my CPA afterward, and he confirmed everything was correct. The AI doesn't replace human expertise, but it specializes in analyzing tax documents and identifying the applicable rules. My accountant was surprised by how comprehensive the analysis was, especially for complicated situations like Schedule SE calculations.

How does this actually work? I've tried calling the IRS so many times and just get the "call back later" message. Does Claimyr somehow bypass the normal IRS phone system?

This sounds too good to be true. I've literally spent HOURS trying to get through to the IRS. If this actually worked, wouldn't everyone be using it? Not sure I believe they can magically get through when nobody else can.

It doesn't bypass the IRS phone system - they use the same phone lines everyone else does. The difference is they have automated systems that keep dialing and navigating the IRS phone tree until they get through. They basically do the frustrating part for you, and only call you when they've got an actual human IRS agent on the line ready to talk. I was skeptical too! But I was desperate after trying for weeks to get through about my Schedule SE issue. The way it works is pretty straightforward - their system keeps trying until they get past the "call back later" message, then they hold your place in line. When someone finally answers, they connect you. It works because most people give up after a few tries, but their system doesn't.

What about the Additional Medicare Tax that kicks in at higher income levels? Is that also calculated individually, or is that one based on joint income since it's part of the regular income tax?

The Additional Medicare Tax (0.9%) is different from the regular Medicare tax calculated on Schedule SE. It's based on your joint income if filing jointly, with the threshold being $250,000 for married filing jointly (compared to $200,000 for single filers). This is reported on Form 8959, not on Schedule SE. Schedule SE only deals with the standard Social Security tax (12.4% up to the wage base limit) and the regular Medicare tax (2.9% with no wage limit). The Additional Medicare Tax is more like an income tax surcharge that's tied to your filing status.

Yes, this applies the same way for tax year 2023. Each of you will complete separate Schedule SE forms using only your individual W-2 wages on line 8A. Since neither of you individually reaches the $160,200 wage base limit, you'll both pay the full 12.4% Social Security portion on your self-employment income. It may seem unfair, but that's how the system works - Social Security taxes are tied to individuals, not couples. If all the income was earned by one spouse, they'd hit the limit and avoid additional SS tax. But when split between two people, each person's "counter" toward the limit is separate.

Thanks for confirming! Still feels unfair but at least now I know what to expect. Guess this is the so-called "marriage penalty" people talk about. Might need to adjust our withholding or estimated payments to account for this extra SE tax. Ugh, taxes are so complicated!

Thank you so much for the professional insight! As someone new to dealing with self-employment income, this is really helpful. You mentioned claiming the deduction for the employer portion of SE tax - where exactly does that go on the joint return? Is that something that gets calculated automatically by tax software, or do we need to manually enter it somewhere? I want to make sure we don't miss out on that deduction since we're already paying more SE tax than I initially expected!