|
|
|
|
|
Do I have to Pay Self Employment TaxesNavigation: Home > Tax Law > Do I have to Pay Self Employment Taxes?
|
|
Both the short and long answer to this question is the same: Yes, you do have to pay Social Security and Medicare taxes. Self Employment taxes are calculated on Schedule SE, which you are required to file if you earn more than $400 in self-employment income. The self-employment tax rate is 15.3 percent (12.4 percent for Social Security and 2.9 percent for Medicare). Self-employment taxes of 15.3 percent apply to any self-employed earnings you make under $87,000. For any earning over $87,000, only the 2.9 percent Medicare tax applies. The good news, however, is that self-employment taxes apply only to .9235 percent of your net income and after you have figured self-employment taxes, you can then deduct 50 percent. |
|
|
Sponsored Ads |
|
|
Sponsored Links |
|
|
|