![]() TaxSlayer makes it easy to complete your forms, calculate your tax, and claim all the tax deductions and credits you deserve–at a fraction of the cost of the competition. That’s all the more reason to use TaxSlayer Self-Employed. Knowing which taxes you’re responsible for as a self-employed worker is a lot to manage–especially if you’re busy finding new business, maintaining the quality of your product and everything else that goes into working for yourself. It is important to research the necessary guidelines to see which ones you qualify for. Other business expenses that could be deducted are things like advertising costs, business insurance, rent, education, meals and more. In that case, you could be deducting a certain amount for mileage. You may also need to travel for your business. For example, if you have a home office, you may be able to deduct a portion of those costs. As a self-employed worker, there are certain expenses you can write off when you file your income tax return. Can I deduct business expenses when I’m self-employed? Learn about different self-employment tax forms. Your business income will be reported on Schedule C, and your self-employment tax will be calculated using Schedule SE. Whether you’re a full-time freelancer or do some projects on the side for extra cash, you need to file an IRS Form 1040, U.S.Federal Income Tax Return, if you earned $400 or more from your self-employment. Just as W-2 employees pay FICA and federal taxes out of each paycheck, self-employed workers must pay the self-employment tax and federal taxes. Learn more about how the self-employment tax works. W-2 employees pay 7.65% on wages up to $137,700 for Social Security and Medicare (FICA), and their employers match this payroll tax, so the total paid per employee for FICA is 15.3%.Īs a self-employed worker, you are responsible for the full 15.3% tax. The self-employment tax is essentially your portion of Federal Insurance Contributions Act (FICA) tax.įor employees who receive a W-2, FICA tax comes directly out of their paychecks. Here are some basic facts about self-employed taxes to help you get started. The good news is, you don’t have to be an expert to file your own return. But, things can definitely get tricky when it comes to filing your taxes. ![]() There are a lot of benefits to being self-employed.
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