Page 38 - SelfEmployment Taxes
P. 38
W HAT IS SELF-EM PLOYM ENT
TAX?
- Self-employment tax is a tax consisting of Social
Security and Medicare taxes primarily for individuals
who work for themselves. It is similar to the Social
Security and Medicare taxes withheld from the pay of
most wage earners.
- Employers calculate Social Security and Medicare taxes
of most wage earners. However, you figure
self-employment tax (SE tax) yourself using Schedule SE
(Form 1040 or 1040-SR).
- Also, you can deduct the employer-equivalent portion of
your SE tax in figuring your adjusted gross income.
- Wage earners cannot deduct Social Security and
Medicare taxes.
TRAINBYUS: TRANSFORMING DIGITAL LEARNING
