How Much Do You Owe The IRS? Self Employment Tax Calculator
Before we directly move on Self Employment Tax Calculator. We need to know a few things. First, you need to know what is Self-employment tax? Second, do you have to pay self-employment tax?
What is the self-employment tax?
Self-employment tax is combination of two things. 1. social security Taxe and 2. Medicare Tax.
It is for those who work for themselves like sole proprietors. If you are the employee and receiving W-2, You have to pay 50% of social security Tax that is 6.2% of the total tax and Medicare tax 1.45%. Rest of 50% will pay your employer.
If you are the sole proprietor and you have to pay both parts of taxes. It means you have to pay 12.40% of Social security Tax and 2.90% of Medicare tax.
Do you have to pay self-employment tax?
If you are the sole proprietor, freelancer, or an independent contractor and you are earning more than $400. You have to pay Social Security Tax. If you are paid in cash and you didn’t receive the 1099-MISC. You can offset your expenses with this.
If your total earning is less than $400.00 You don’t need to pay Self Employment Tax. If you are not going to pay your self-employment tax, you do not need to access our Self Employment Tax Calculator.
Note: Depending on your specific tax situation, you may also need to pay regular income tax. Furthermore, if your income is high enough, you may be subject to the Additional Medicare Tax.
2018 Self Employed Tax Calculator
We are going to share best Self Employed Tax Calculator which you can use to calculate your tax. There are a lot of Self Employed Tax Calculator.
The above list completes the top rating Self Employed Tax Calculators. These are too simple and easy to use. You don’t need any assistance of Accountant or Bookkeeper to file your taxes. You can do them your self if you know your total income and your total deductible expenses.
Quarterly Taxes Estimate
If you are earning, you must have to pay taxes.
If you will not pay taxes throughout the year, you will be assessed penalties.