Self-Employment Tax

Understand the tax obligations of self-employed individuals with our comprehensive guide on Self-Employment Tax. This resource covers the essentials of calculating and paying self-employment tax, which includes contributions to Social Security and Medicare. It explains who is subject to this tax, the applicable rates, and the process for calculating and reporting it. Ideal for sole proprietors, freelancers, and partners, this guide ensures you meet your tax responsibilities and optimize your deductions.

Highlights:

• Who Pays Self-Employment Tax: Generally applicable to individuals with self-employment earnings, including various business owners.

• Tax Rates: Includes contributions to Social Security and Medicare.

• Additional Medicare Tax: May apply to higher-income earners.

• Deduction for Self-Employment Tax: Partial deduction available on your tax return.

• Reporting Requirements: Requires specific IRS forms for reporting.

• Optional Methods: Alternative methods for calculating self-employment tax are available.