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Self-Employment Tax Calculator
Table of Contents
Part of running a successful one-person business includes optimizing your tax situation. Tax liabilities for self-employed individuals are much different from those for employees. Use this calculator to estimate your self-employment tax obligations.
Key terms for the self-employment tax calculator
Net farm income or loss
This represents the net income or loss from farming activities, including the profit or loss reported on Schedule F and any income from farm partnerships.
Net business income or loss
This is the net income from businesses and partnerships, reported on IRS Schedule C for sole proprietorships and Schedule K-1 for partnerships. Exclude income from farm partnerships, as it should be included in the net farm income or loss.
Church employee income
If your church employee income exceeds $108.28, self-employment taxes are applicable. This excludes income received as a minister, which should be reported separately.
Employer paid income
Enter total wages and tips with Social Security deductions. In 2023, income up to $160,200 is subject to the 12.4% Social Security tax for self-employment. If total wages exceed $160,200, no additional Social Security taxes are owed for the year.
Net church employee income
This is the total church income subject to self-employment taxes. It is calculated by multiplying church employee income by 92.35%. If the amount is less than $100, no self-employment taxes are owed on this income.
Self-employment income
This is the total income subject to self-employment taxes. It is calculated by multiplying net farm income or loss and net business income or loss by 92.35%. If the result is under $400, no self-employment tax is owed on this income.
What are self-employment taxes?
Self-employment taxes are designed for self-employed individuals to contribute to Social Security and Medicare. While employees normally have these taxes withheld from their paychecks automatically, self-employed people are responsible for estimating and paying their tax obligations quarterly.
What are some tax deductions for self-employed individuals?
Self-employed individuals can claim a number of small business deductions to reduce tax liabilities. These include the home office deduction, business vehicles, health insurance premiums, retirement contributions, professional fees, education and advertising. Business-related travel, meals and entertainment are also tax-deductible. Be sure to consult a tax professional for a more accurate assessment of your eligibility for certain deductions.
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