With Tax season right around the corner I thought this might be a great time to do a small post on Self Employment Tax. Currently the SE Tax rate is at 13.3%. Out of this, 10.4% of it goes toward Social Security and the other 2.9% goes toward Medicare.
For more in depth information you can visit the IRS website. I've linked to an article on their site that has more information about Self Employment Tax. You can also just go to http://www.irs.gov and search for paying SE Tax.
Last year when I was preparing for tax season I found a site that offers a free calculator to help you figure your what your SE Tax will be based on your income for the year. http://www.calcxml.com. This is a great tool for those of us who can't easily figure 13.3% out on their own. I know there are other SE Tax calculators out there, probably even better ones, but I happen to like this one and have used it now 2 years in a row.
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