You can deduct 50% of your self-employment tax on your income taxes. You may need to pay self-employment tax if you’re a freelancer, an independent contractor or a small-business owner.

You can deduct half of your self-employment tax from your net income when you’re calculating your income tax. So, if your self-employment tax amounts to $3,500 for the year, for instance ...

The good news? You can generally deduct half of it when you calculate your adjusted gross income. While this won’t impact your net self-employment earnings or tax liability, it will reduce your ...

This makes it easier to report and claim deductions come tax time. The self-employment tax In addition to income tax, there is a separate tax self-employed people must pay on net earnings called ...

Another new thing for contractors — self-employment tax! The self-employment tax rate is 15.3% of income, including 12.4% for Social Security and 2.9% for Medicare. As an employee, your employer ...