A self-employment tax calculator is an online tool that can help self-employed individuals calculate their estimated self-employment taxes. This type of calculator typically requires the user to input their income and expenses, as well as their filing status and any applicable deductions or credits. The calculator will then provide an estimate of the user’s self-employment tax liability. Using a self-employment tax calculator can be a helpful way to ensure that you are paying the correct amount of taxes and to avoid any penalties or interest charges.
Self-employment taxes are important because they help to fund Social Security and Medicare benefits. Self-employed individuals are responsible for paying both the employee and employer portions of these taxes. The self-employment tax rate is 15.3%, which is divided into two parts: 12.4% for Social Security and 2.9% for Medicare. Self-employment taxes are due on April 15th of each year, along with your income taxes.
