Written By: Rosanna Webb The allure of freelancing lies in the ability to select projects, establish a personal timetable, and operate from nearly any location . Nevertheless, this autonomy is accompanied by a considerable duty: the management of your tax responsibilities. Navigating self-employment taxes can seem daunting, but understanding the essentials will ensure you remain compliant and avoid costly mistakes. I’ll walk you through everything you need to know about self-employment taxes, from understanding your obligations to maximizing deductions and preparing for tax season. Understanding Self-Employment Taxes The primary components of self-employment taxes are Social Security and Medicare taxes . Unlike traditional employees, freelancers are responsible for paying both the employer and employee portions of these taxes. Presented here is a summary of the primary components: Self-Employment Tax Rate : As of 2024, the applicable rate for self-employment tax is 15...
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