You work hard for every penny you earn, but protecting it come tax time can be a challenge.At TaxAct, we get it. And we can help.
Tracking expenses, due dates and estimated quarterly taxes are among a freelancer's top concerns. Whether your business is your primary source of income or you freelance part time, your tax situation is a little different than most. That doesn't mean it has to be difficult.
Self-employment tax is money a business owner must pay to the federal government to fund their share of Medicare and Social Security. This tax must be paid if your net earnings total $400 or more during the tax year. It is separate from federal income tax and equals 15.3 percent of your self-employment income.