Self-Employment Tax

What Is Self-Employment Tax? If you work for yourself — whether as a freelancer, independent contractor, consultant, or small business owner — you are responsible for paying self-employment tax. Self-employment tax is not an additional penalty or special business tax. It is simply how self-employed individuals pay Social Security and Medicare taxes. When you work […]

You close the year with $95,000 in freelance income.You worked hard. You managed clients. You grew your business. Then tax season arrives — and you discover that beyond income tax, you owe something called self-employment tax. The rate? 15.3%. According to official IRS guidance on self-employment tax, individuals who work for themselves must pay both