Self-Employment Tax Calculator with Auto-Complete SE Worksheet

Self-Employment Tax Calculator Sign

This self-employed tax calculator will estimate your 2018 Medicare and social security taxes based on your forecasted income, calculate the deduction that will lower your Adjusted Gross Income.

Plus, the calculator also has a built-in feature that will annualize income forecasts based on non-annual amounts.

And finally, included in the results will be a printer friendly, auto-completed 2018 Self-Employment Tax and Deduction Worksheet that can then be used to complete the 2018 Estimated Tax Worksheet (Schedule SE - Form 1040).

Disclaimer: This tool is for estimation purposes only. Be sure to consult with a qualified tax expert before deciding how much to set aside for self-employment taxes.

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Self-Employment Tax Calculator

Estimate your self-employment taxes based on your forecasted income, plus calculate the deduction that will lower your Adjusted Gross Income (AGI).

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Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Farm P/L:Net farm P/L:Net farm profit or loss:Net farm profit or loss:
Profit:
$
Period:
Annual:$0.00

Net farm profits:

Enter your expected net farm profit or loss. Enter as a dollar amount but without the dollar sign or any commas. Or, if you would like to enter a non-annual amount and have the calculator annualize it for you, expand the description in this row to enter the profit amount per selected period.

At the time of filing, this amount would be from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A.

$
CRP pmts:CRP payments:CRP payments:CRP payments:

CRP payments:

If you will receive farm income and also receive social security or disability benefits, enter the total of the CRP (Conservation Reserve Program) payments you expect to receive. Enter as a dollar amount but without the dollar sign or any commas.

$
Net profit:Net profits:Net profits subject to SE tax:Annual net profits subject to SE tax:
Profit:
$
Period:
Annual:$0.00

Annual profits subject to SE tax:

Enter your expected net profits subject to self-employment tax. Enter as a dollar amount but without the dollar sign or any commas. Or, if you would like to enter a non-annual amount and have the calculator annualize it for you, expand the description in this row to enter the profit amount per selected period.

At the time of filing, this amount would be from Schedule C, line 31; Schedule C-EZ, line3; Schedule K1 (form 1065), box 14, code A (other than farming); Schedule K1 (Form 1065-B), box 9, code J1.

$
Church inc:Church income:Church employee income:Church employee income:

Church employee income:

If you will receive income as a church employee, enter the total income you expect to receive. Enter as a dollar amount but without the dollar sign or any commas.

At the time of filing, this will be from the Form W-2 you receive from the church.

$
Wages, tips:Wages & tips:SS wages and tips:Social security wages and tips:

Social security wages and tips:

If you will receive income from wages, tips, and/or railroad retirement (tier 1), enter the total amount you expect to receive. Enter as a dollar amount but without the dollar sign or any commas.

$
Extra tips:Unreported tips:Unreported tips subject to SS:Unreported tips subject to social security tax:

Unreported tips subject to social security tax:

Enter your expected unreported tips. Enter without dollar sign or any commas.

At this time of filing, this amount will be from Form 4137, line 10.

$
Extra wages:Unreported wages:Unreported wages subject to SS:Unreported wages subject to social security tax:

Unreported wages subject to social security tax:

Enter your expected unreported wages. Enter without dollar sign or any commas.

At this time of filing, this amount will be from Form 8919, line 10.

$
Medicare:Medicare tax:Medicare tax:Medicare tax:

Medicare tax:

Based on your entries, this is the estimated medicare taxes you will owe, which is 2.9% of your expected profits.

SS tax:Social security tax:Social security tax:Social security tax:

Social security tax:

Based on your entries, this is the estimated social security taxes you will owe, which is 12.4% of your expected profits (up to a maximum income of $128,400 for 2018).

Tot SE tax:Total SE tax:Total estimated self-employment tax:Total estimated self-employment tax:

Total estimated self-employment tax:

This is the combined total of your medicare and social security taxes, which is 15.3% of your expected annual profits.

SE deduction:SE tax deduction:Self-employment tax deduction:Self-employment tax deduction:

Self-employment tax deduction:

This is the amount that can be used to reduce the amount of taxable income when figuring your total estimated federal taxes for the year. The deduction is equal to 50% of your self-employment tax.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Help and Tools

Learn

What self-employment tax is, what the rates are, and why I feel they are unfair to sole proprietors.

What is Self-Employment Tax?

If you are employed by a company, your employer is required to withhold Medicare and social security taxes from your paycheck. Nothing new there, right?

However, what you may not know is that your employer is also required to match the Medicare and social security taxes being withheld from your paychecks. In other words, the Medicare and social security taxes paid by your employer are double what is being withheld from your check.

Of course, if you are your own employer (self-employed), then guess who gets to pay the Medicare and social security match amount? That's right, YOU DO!

So self-employment tax is basically the matching amount you pay as your own employer, plus the tax amount you pay as your own employee.

Furthermore, even if you earn wages from an employer, but you earn more than $400 annually from a side business of your own, you will still need to pay self-employment taxes on the profits your side business generates.

What is the Self-Employment Tax Rate?

The following chart shows the Medicare and social security tax rates for 2018:

Tax TypeEmployee
Share
Employer
Match
Self-
Employment
Medicare rate:1.45%1.45%2.9%
Social security rate:6.2%6.2%12.4%
Total tax rate:7.65%7.65%15.3%

Note that the social security tax rate is applied to a maximum income of $128,400. Also, note that higher incomes may be subject to an additional .9% Medicare rate for Medicare wages earned in 2018.

Self-Employment Tax Deduction: A Small Consolation

While a self-employed person pays twice the Medicare and social security taxes that an employee pays, one small consolation is that the IRS allows the self-employed person to deduct 50% of his/her self-employment taxes from income that is subject to federal income taxes.

Why do I consider this deduction to be a small consolation? Because if you are self-employed and paying, say $4,000 per year more in Medicare and social security taxes than an employee pays, and you are in a 25% tax bracket, the self-employment deduction means you are still paying $3,000 more in Medicare and social security taxes than an employee who is making the same amount of money (a $4,000 deduction would only result in a $1,000 tax savings).

Is that fair?

From my perspective, it's most certainly NOT fair. Unfortunately, there are far more employees than there are self-employed individuals, so we don't have unions and lobbyists fighting for our rights in Washington. Nor do we have the numbers to elect politicians who will represent our interests equal to those of "the entitled" or of the mega-corporations.

But as unfair as self-employment taxes are, I still consider having to pay them as being the lesser of two evils. I would much rather pay an unfair share of taxes than enslave myself to a boss -- especially considering some of the bosses I've had (egos much larger than their IQs).

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.