TaxGuided
All glossary terms

Glossary term

Self-Employment Tax

Social Security and Medicare tax on net earnings from self-employment.

Related terms

2

Jurisdictions

us

Definition

SECA imposes both halves of FICA on self-employed individuals - 12.4 percent OASDI (subject to the wage base) plus 2.9 percent Medicare. A deduction equal to half the SE tax is allowed in computing AGI.

Examples

  • A freelancer with $100,000 of SE income owes about $14,130 in SE tax plus 0.9 percent additional Medicare on amounts above the threshold.

Translations

ESimpuesto sobre el trabajo por cuenta propia
ZH自雇税
DESelbständigkeitssteuer
FRimpôt sur le travail indépendant
JA自営業税

Citations

26 U.S.C. · 1401

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Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.