Self Employment Tax: What You Need To Know In 2023
Selfemployment tax for U.S. citizens abroad from 1040abroad.com The concept of self-employment tax is a complex one, but it’s an important topic for anyone who is self-employed or considering becoming self-employed. In 2023, the rules for self-employment tax remain largely unchanged from 2021, however, as with any tax related topic, it’s important to stay up to date on the latest changes and make sure you’re aware of any new developments. Here’s a look at what you need to know about self-employment tax in 2023. What is Self Employment Tax? The self-employment tax is a 15.3% tax that is assessed on self-employed individuals, such as freelancers, independent contractors, and business owners who are not incorporated. This tax is used to pay for Social Security and Medicare. It’s important to note that the self-employment tax is in addition to any other income tax you may owe. In 2021, the self-employment tax rate was 15.3%, with 12.4% going to Social Security and 2.9% going to Medicar...