Question 1

What is self-employment tax?

Accepted Answer

The Social Security and Medicare tax, 15.3% total, that self-employed people pay on both the employee and employer halves, on 92.35% of net profit.

Question 2

Is any of it deductible?

Accepted Answer

Yes, you deduct half of your self-employment tax against your income tax. The calculator shows that amount.

Question 3

Is this the same as income tax?

Accepted Answer

No, SE tax is separate from and in addition to federal and state income tax. Budget for both.

Self-Employment Tax