Question 1

What is self-employment tax?

Accepted Answer

Self-employment (SE) tax is the Social Security and Medicare tax that self-employed individuals pay. Unlike employees, who split these taxes with their employer, the self-employed pay both portions — 12.4% Social Security and 2.9% Medicare, for a total of 15.3%.

Question 2

How is self-employment tax calculated?

Accepted Answer

First, multiply your net profit by 92.35% to get net earnings subject to SE tax. Then apply 15.3% (12.4% Social Security up to the wage base, plus 2.9% Medicare with no limit). If your net earnings are $400 or less, you generally do not owe SE tax.

Question 3

Can I deduct part of my self-employment tax?

Accepted Answer

Yes. You can deduct the employer portion — 50% of your total SE tax — from your Adjusted Gross Income (AGI) on Form 1040. This deduction reduces your overall taxable income.

Question 4

What is the Additional Medicare Tax for the self-employed?

Accepted Answer

If your combined wages and self-employment earnings exceed the threshold for your filing status ($200,000 single, $250,000 married filing jointly, $125,000 married filing separately), an additional 0.9% Medicare tax applies to the excess.

Calculateur d'impôt sur le travail indépendant

Calculateur d'impôt sur le travail indépendant

Votre impôt sur le travail indépendant

Fonctionnement de l'impôt sur le travail indépendant

1. Revenu net

2. Taux de l'impôt SE

3. Medicare additionnel

4. Déduction