How to calculate self employment tax

In this video I'm talking about how to calculate self employment taxes. If you're wondering how FICA, social security and medicare taxes work as a self employed small business owner, independent contractor or sole proprietor this video is for you. I am going through the calculation of the self employment tax, schedule SE and Schedule C line 31 for net profit.

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Our financial planning process is an ongoing relationship because as you grow, your financial plan grows with you. At Sickle Hunter Financial Advisors, we believe that saving and making sound financial decisions will help improve your life’s changing needs and objectives. Retirement, college planning, wealth building, social security, and career benefit packets are only a few of the financial decisions that you may face in your lifetime and we’re here to help guide you.

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TRAVIS T SICKLE, CFP®, EA®, AAMS®, CRPC®, RICP®
CERTIFIED FINANCIAL PLANNER™

twitter: @travissickle

Sickle Hunter Financial Advisors
1646 W Snow Ave.
Suite 144
Tampa, FL 33606

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Our financial planning process is an ongoing relationship because as you grow, your financial plan grows with you. At Sickle Hunter Financial Advisors, we believe that saving and making sound financial decisions will help improve your life’s changing needs and objectives. Retirement, college planning, wealth building, social security, and career benefit packets are only a few of the financial decisions that you may face in your lifetime and we’re here to help guide you.

TRAVIS T SICKLE, CFP®, EA®, AAMS®, CRPC®, RICP®
CERTIFIED FINANCIAL PLANNER™

twitter: @travissickle

Sickle Hunter Financial Advisors
1646 W Snow Avenue
Suite 144
Tampa, FL 33606

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Information in this video is for educational and entertainment purposes only.
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#travissickle

[SusanWang]

I loved this video! Thanks for breaking it down and explaining it so simply.

[holdilocks]

😬🤯😖🥴 what is not to love about begin a business owner in the USA spend more time on taxes than eating, sleeping and working combined!

[valeriaalcorta]

Thank you for breaking this down it was so helpful, I am working contract for the next 6 months and have never done it to where I had to take out my own taxes. This clarified so much. I work in the state of Texas and they don't have a state tax so I only have to worry about social security and medicare.

[sonwane]

Greatly explained. New subscriber! Thanks a lot.

[rosyrayy]

THANK YOU SOO MUCH FOR THIS VIDEO! Lifesaver

[noy]

thank you for great video, questions, do you know if total medical expenses can be tax deduction?

[charlesmangezi]

Thank you so much, very helpful hey!!!

[milliew.]

So Line 6 (the 7k) is the amount of taxes due?? I was following good up until that calculation.

[danielrose]

Hi there! I currently have two online 1099 jobs but only make about $11k a year from them...do I seriously have to pay self-employment taxes (15.3% before deductions) on this little amount?

[fedge]

Finally a video that explains how to deduct my self employment tax! New Sub

[elessar]

Thank you. I couldn't for the life of me figure out from where out of their asses all these articles were pulling this 92.35% figure. Great help.

[johnconnor]

Well, now I know the CPA I got royally screwed me. I paid $5k taxes on my side business that only made $16k. And everyone kept telling me to get a CPA to save money lol

[rayzucchero]

what if sch C is a loss? Exp. higher than Income?

[fresh]

As a self employed business is it possible I can set up quick books to deposit money to me through by business but set up to we’re it takes 15.3 percent each deposit to keep up with the quarterly pay

[sarkisardjian]

Do you also have to pay the tax bracket percentages on top of the percentage you provided? For example first 10k is 10% then to 40k it’s like 12%? So it would be the 15.3% + the percentages of the brackets you’re in based on income amount?

[ashmax]

hey Travis Do the self employed people need to pay for SS and Medicare while filing their tax? or is there a way to make monthly contributions?

[erinbaumgartner]

I’ve watched this a couple of times and taken notes. So easy to understand and follow. I did some random practice numbers and compared to the online estimator and it all came out accurately. I do however have one question, and I’m probably overthinking it in my head.

If I’m looking at the entire year and dividing by 4 this is easy, no problem, but when I put pen to paper and do the calculations annualized feel like I am missing something obvious that should make it easier than I am. The part that slows me down is calculating the income tax withholding based on the brackets since I can’t work all the way back to the first bracket. I can do it, and I get it right when I total it up and check it as a single submission, and I understand not to take the standard deduction after Q1 a second time, that I need to apply the 20% business credit each time, etc, but I can’t seem to get streamlined in my mind is if there is a formula or series of operations I could and should apply that would help me determine the amounts of the taxable income falling into each bracket in consecutive quarters after q1.

Hope that makes sense, and that maybe you can share some insight that would make the process a little less muddy in that area.

Thanks again for the great tutorial, it’s very much appreciated!!

[ashleebartolo]

So do you Pay only what’s in the box #6?

[ANOXanubis]

do these percent change often year to year?

[jorgepena]

So what’s the total ? How much you paying on tax ?