Self-employed individuals pay full tax rates
When you’re an employee, you and your employer each pay 6.2 percent of your wages in Social Security tax, which adds up to a total contribution from both of 12.4 percent. However, if you’re self-employed, you’re both the employer and the employee, so you’re responsible for the entire 12.4 percent tax yourself.
On the bright side, self-employed taxpayers get a tax deduction equal to the employer portion of the Social Security tax on their federal income taxes.
2 thoughts on “10 Social Security Tips Every Baby Boomer Should Know”
I have attempted to call Social Security as I would like an updated statement on what I can estimate to retire with. The last update I received was in 2009.
Thanks.
How do I go about getting help with Social Security/Medicare from a specialist?