01/22/2020
The SE tax consists of Social Security taxes and Medicare taxes. The self-employment tax is comparable to what is taken out of full-time employeesโ paychecks. Since self-employed folks donโt have this amount automatically withdrawn from their paychecks, they must file their Schedule SE, or Form 1040. The current self-employment tax rate is 15.3% and consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).
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