self-employment tax

Definition of "self-employment tax"
  1. A tax on the net income of self-employed individuals used to fund Social Security and Medicare, consisting of a percentage up to a specific limit, with an additional percentage applied without limit, declared on Schedule SE of the income tax return
How to use "self-employment tax" in a sentence
  1. As a freelancer, she calculated her self-employment tax for Social Security and Medicare contributions.
  2. Schedule SE must be filled to report the self-employment tax on his income tax return.
  3. The accountant advised about the need to save for self-employment tax.

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