Category: Mortgage

As a self-employed individual, you are responsible for paying self-employment taxes on your net earnings from self-employment. This tax is used to fund Social Security and Medicare, and it can be a significant expense for many freelancers and small business owners. The self-employment tax rate is 15.3% of your net earnings from self-employment, which includes 12.4% for Social Security and 2.9% for Medicare. However, you can deduct half of your self-employment tax as a business expense, which can help reduce your taxable income. Separating Business and Personal Expenses To reduce your...