The IRS offers a breakdown of current self-employment rates online. Websites like Bankrate and CalcXml offer self-employment tax calculators that can be used to estimate tax liability.Continue Reading
Self-employment taxes are comprised of Social Security and Medicare taxes, according to the IRS. Self-employed workers pay 12.4 percent of their income towards Social Security and 2.9 percent of their income towards Medicare in 2015, according to CalcXml.
An additional 0.9 percent Medicare tax is paid on earnings above $200,000 for single filers, $250,000 for married filers filing jointly and $125,000 for married filers filing separately, states the IRS. Other factors and deductions apply, depending on other employment conditions.Learn more about Taxes