Are you a freelancer, independent contractor, or small business owner looking to reduce your
tax burden and maximize your savings? Are you drowning in the murky waters of self-
employment taxes? Do you find yourself struggling to navigate the complex maze of tax rules
and regulations that come with being your own boss? Fear not, for help is at hand!
Understanding and taking advantage of the self-employment tax deduction could be the key to
achieving your financial goals.
Self-employment taxes can be tricky. If you have a role in a partnership, different income
streams, or various gigs, you may need to assess your tax situation. If you work for yourself or
are a sole proprietor, it is generally well-known that you are required to pay self-employment
taxes.
However, the scope of self-employment extends far beyond these obvious scenarios. For tax
purposes, being self-employed can mean more than just managing your own business. It can
include freelance earnings or even your share of income from a partnership.
The self-employment tax refers to the Medicare and Social Security taxes that self-employed
people like freelancers, independent contractors, and small business owners must pay. The self-
employment tax rate is 15.3% on net earnings (12.4% for Social Security and 2.9% for
Medicare).34 Employers and employees share these taxes, each paying 7.65%. People who are
fully self-employed pay for both parts themselves.
If you are unsure whether you should be paying self-employment taxes, we can provide tailored
advice. Our team of experts stands ready to provide you with tailored advice and support,
ensuring you meet your tax obligations while maximizing your financial potential. Don’t let the
self-employment tax monster intimidate you – take control of your finances and secure your
future today!