Filling out your taxes for 1099 contract work or as a self-employed taxpayer? You might have just discovered a little-known but important facet of working for yourself - the Self-Employment Tax. What is it and how can you avoid paying too much? What is the Self-Employment Tax? The Self-Employment tax is the full portion of your Social Security and Medicare taxes based on your income. While wage employees also pay a contribution to their Social Security and Medicare taxes, their employers pick up a matching contribution.
18 February 2015