If you are self-employed, you have a number of tax obligations that you need to be aware of. These obligations include:
- Income tax: Self-employed individuals must pay income tax on their net earnings from self-employment. Net earnings are calculated by subtracting business expenses from gross income.
- Self-employment tax: Self-employed individuals must also pay self-employment tax. Self-employment tax is a combination of Social Security and Medicare taxes. The self-employment tax rate is 15.3%.
- Estimated tax payments: Self-employed individuals must make quarterly estimated tax payments. Estimated tax payments are due on April 15, June 15, September 15, and January 15.
- Filing a tax return: Self-employed individuals must file an annual tax return. The deadline to file a tax return is April 15.
It is important to note that self-employed individuals may be eligible for a number of tax deductions and credits. These deductions and credits can help to reduce the amount of taxes that you owe.
If you are self-employed, it is important to consult with a tax professional to make sure that you are aware of your tax obligations and to get help with filing your tax return.