TAXES & LICENSES
Self Employment Taxes
If your net earnings from self employment are $400 or more don't forget that in addition to paying income taxes, the IRS requires that you also pay self employment tax, which is similar to the Social Security and Medicare that would be withheld from your pay if you had a 9-5 job. Currently, the self employment tax rate is 15.3%. However, you can deduct a portion of this tax when you file your tax return at the end of the year.