Self-Employment Tax Explained: Tax Compass Guide for Solo Entrepreneurs
Self-employment tax management is crucial for freelancers and independent contractors. This guide provides essential information to help solo entrepreneurs understand and optimize their tax obligations. Understanding Self-Employment Tax Basic Components Social Security 12.4% total contribution Income limits Calculation methods Payment schedules Medicare 2.9% total contribution No income limit Additional Medicare tax Threshold amounts Calculation Methods Net Earnings Gross income determination Allowable deductions Loss considerations Multiple business impact Special Situations Optional methods Farm income Church earnings Foreign income Tax Planning Strategies Deduction Optimization Business Expenses ...