What the IRS doesn’t tell you about self-employment taxes

Bill Bischoff
What the IRS doesn’t tell you about self-employment taxes

Do you owe the dreaded 15.3% self-employment (SE) tax on random non-employee income that you only collect occasionally or in a one-off circumstance? The SE tax is the way the Feds collect Social Security and Medicare taxes on non-salary income from work-related activities. Above the $132,900 threshold, the Social Security tax component goes away, but the 2.9% Medicare tax continues.