💼 Self-Employment Tax Calculator
Calculate 1099/freelance taxes for 2024
📊 Business Income
🧾 Tax Breakdown
Understanding Self-Employment Tax
Self-employment tax covers Social Security and Medicare taxes for freelancers, contractors, and small business owners. Unlike W-2 employees who split these taxes with employers, self-employed individuals pay both portions—totaling 15.3% on net earnings.
Self-Employment Tax Breakdown
- Social Security: 12.4% on first $168,600 (2024)
- Medicare: 2.9% on all earnings
- Additional Medicare: 0.9% on earnings over $200,000
Ways to Reduce Self-Employment Tax
Deduct business expenses to lower net earnings, contribute to a SEP-IRA or Solo 401(k), and consider S-Corp election if your income is high enough to justify the additional complexity.
Frequently Asked Questions
Who pays self-employment tax?
Anyone with $400 or more in net self-employment income must pay SE tax. This includes freelancers, gig workers, sole proprietors, and partners in partnerships.
Can I deduct self-employment tax?
Yes, you can deduct the employer-equivalent portion (7.65%) from your adjusted gross income. This deduction is taken on Form 1040, not Schedule C.
When are quarterly taxes due?
Quarterly estimated tax payments are due April 15, June 15, September 15, and January 15. Miss these deadlines and you may owe penalties.