Professional services
Tax Calculator
A combined estimate of income tax and self-employment tax, for setting money aside.
Result
Not tax advice, and not a filing calculation. This estimates what to set aside using rates you supply. Brackets, thresholds, deductions, credits and state rules change every year and interact with the rest of your return in ways no single calculator models. Confirm anything that affects a payment or a filing with an accountant. Self-employment tax applies to about 92.35% of net earnings, and half of it is deductible against income tax. The Social Security portion stops above an annual earnings threshold that changes each year; this does not model that cap, so it overstates the tax for higher earners.
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About this calculator
How much should I set aside as a rule?
Many self-employed people use 25% to 30% of net business income, but it depends entirely on total household income, deductions and state. Use your own figures and revisit quarterly.
Why is half the self-employment tax deducted first?
Because it mirrors the employer-side deduction an employer would take. It reduces the income on which income tax is calculated, though not the self-employment tax itself.
The formula
self-employment tax on business earnings, then income tax on total income less deductions and half the SE tax
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