How The Self Employment Tax Works (And How You Can Avoid It!)

Everything you could possibly need to know about self-employment tax is covered in this video. Who pays it, what it is, when you pay it, where you pay it at, why it exists, and how much it is. Believe it or not, self-employed individuals aren't the only people who pay "Self-employment tax". This is because the self-employment tax is known more formally as FICA taxes. Everyone with earned income pays FICA taxes including self-employed individuals, employees, and businesses on behalf of their employees.

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This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Before making financial and legal decisions, consult financial and legal professionals licensed in your jurisdiction. Some links provided may be part of an affiliate advertising program designed to provide a means of compensation for referring traffic and business to other companies.

[OnCashFlow]

You know what makes tax time SO MUCH easier? Tracking your income! (I use and recommend Personal Capital):

[thunderthumbz]

I was wondering if he would ever knock over that oddly placed plant.

[truemetaljesus]

In all my years of ADHD struggle, this is the only explanation of something that made sense the first time 🙏 amazingly helpful

[ahmadjibawi]

In 1 video, you answered 10 questions I couldn't find good answers for months. Thank you

[kayleenbertrand]

This was super helpful for me as I am working on growing my self-employment business! Thank you so much!

[youngwealthcreation]

Great video man, super informative. Subscribed!

[bfreeinjesus]

Very solid info to help navigate the tax maze! Thanks a lot!

[malaquiasalfaro]

By far the most coherent video on this subject

[josephinebardot]

Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This YouTube channel is very informative and effective.

[aryanasmith]

Excellent video!
Thank you very much for your hard work.

[yojimbe]

Social Security and Medicare won't be there for me when I retire. They barely take care of seniors now. Taxation is theft in my opinion.

[ahmadjibawi]

Thank you, very clear and informative 👍

[dachickenman]

My man, this is helpful stuff. Thank you

[ThinkerThunker]

Good info, thanks. I wasn't understanding why contributing to an IRA or SEP wasn't lowering my taxes owed.

[relivethegames]

Finally a video where it is explained in clear english

[jsburrelli]

I recently started my own business, things have been a crazy worldwide. i enjoy the amount of work i have but being 26 and not having any collage level education I find myself becoming easily stressed out by the desk work and red tape. I've taught myself deasil mechanics, machining, milling, hydraulics, and welding. But when the numbers and organization are needed I feel like the dumbest person on the planet. I've been a physical worker my whole life and I believe my biggest weakness is how to properly organize everything . Any suggestions for organizing things like cashflow, deductions, expenses, etc.? Also wonderful video, im trying to learn tax info and this was a huge leg up! THANKYOU!

[IsidaKarpuzi]

08:13 self-employment tax employer portion (half) is deductible from income taxes for self-employed persons

[dracojensei]

Best way buy item sell for less with deductions making profit means big tax bill on your gross especially if u cross post

[michaelhodges]

I have a question on SE taxes... Can we deduct car insurance, cellphone, toll tag, and meals on our taxes?

[sddkekm]

Hi I find my self revisiting this video after first finding it during last years tax season. Can you help clarify what you're talking about @ 7:50 when you're saying that if a self employed person owes 10k they can deduct 5k? I owed 10k in self employment taxes last year and paid 10k, was there a way for me to have just paid 5k? Or can I now deduct 5k from my profits this year? I am feeling confused about this part and that there's something I'm not understanding. Thanks for this awesome video I learned so much!