Self-Employment Income
Total income from 1099s, freelance work, etc.
Deductible business expenses (equipment, supplies, etc.)
Don't Forget Quarterly Payments!
Self-employed individuals must pay estimated taxes quarterly to avoid penalties. Due dates for 2026: April 15, June 15, September 15, 2026 and January 15, 2027.
Understanding Self-Employment Tax
What is Self-Employment Tax?
Self-employment tax is the equivalent of FICA taxes (Social Security and Medicare) for self-employed individuals. While employees split these taxes with their employer, self-employed workers pay both portions.
2026 Self-Employment Tax Rate: 15.3%
- • Social Security: 12.4% (on first $176,100)
- • Medicare: 2.9% (no income limit)
- • Additional Medicare: 0.9% (income over $200k/$250k married)
Key Deductions for Self-Employed
- SE Tax Deduction: You can deduct 50% of your self-employment tax from your income
- Business Expenses: Equipment, software, home office, travel, etc.
- Health Insurance: Self-employed health insurance premiums are deductible
- Retirement Contributions: SEP-IRA, Solo 401(k), or SIMPLE IRA
- QBI Deduction: Up to 20% deduction on qualified business income
Common Business Expenses
- Home office (actual expenses or simplified method)
- Computer equipment and software
- Business travel and meals (50%)
- Professional services (accountant, lawyer)
- Marketing and advertising
- Professional development and education
Have a W-2 Job Too?
Use our main calculator to see your combined W-2 and self-employment income.
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