Medicare Tax Info - Get the Facts Or Uncle Sam Will Make You Pay

Sticky Situation: Handling tax issues can be tricky. What you need to do varies greatly depending on your specific situation. If you don't have the IRS withdraw money from your income for SSI and Medicare, you could end up actually owing money to the IRS! So be careful about the choices you make. If you're self-employed, learn how to have the IRS get that their share of the income.

The Self Employed and Medicare/SSI Tax Issues:

Employer at Fault? What can you do if your employer will not withhold income taxes, social security, and Medicare from your pay? You're being treated as an independent contractor. If you know that's not the case, and you can provide evidence that you are an employee, act fast! You don't want to be held liable for this. File Form SS-8 "Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding".

Self-Employed? If you're Self-Employed, it's your responsibility to make your payments on time. Use the following forms:

- Form 1040C "Profit or Loss from Business (Sole Proprietorship)"

-Form 1040SE "Self-Employment Tax" This form is used to determine your SSI and Medicare Tax

Need more help than that? Use IRS Publication 505 "Tax Withholding and Estimated Tax."

Aliens and Medicare SSI Tax Issues:

Aliens: If you are an Alien with a temporary Visa, you are not subject to Medicare and SSI taxes. First, let your employer know and try to get a refund. If this doesn't work, file Form 843 "Claim for Refund and Request for Abatement." Then attach the following:

-W2 to prove the amount withheld

-Copy of pay stubs

-Copy of your valid Visa

-Form 8316 "Information Regarding Request for Refund of Social Security Tax."

-Copy of Form 1040NR "US Nonresident Alien Income Tax Return"

Avoiding Sloppy Mistakes: As you can see, small mistakes can grow and turn into tax debt if not taken care of quickly. Keep a close watch on that kind of information, and make sure everything goes right the first time.

Now You Have The Smoking Gun...Use it!

Richard Close was an IRS-Hitman. He worked as a revenue officer for the IRS and his father was the head of the collections branch for 30 years; so it runs in the family. He left that behind and now he's partnered with Tax Defense Network to help thousands of Americans with their tax problems. He gives the tips and tricks for you to fight the IRS and win! Visit him at: http://irs-hitman.blogspot.com or http://www.taxdefensenetwork.com or contact: email irs-hitman@taxdefensenetwork.com or 1-888-248-9058.