How to Calculate Self-Employment Tax?

Question

how is it calculated

Answer 1

It is computed on schedule SE. The first $94,200 of earnings for 2006 will be subject to a tax rate of 12.4%. All earnings will also be subject to a rate of 2.9%.
For example if your net earnings is $100,000 the tax would be:
$94,200 X .124 = $11,680.80, then $100,000 X .029 = $2,900.00 for a total SE tax of $14,580.80.
One half of this amount is then deductible on the front of your 1040 as an adjustment to your total income.
If you also have wages that have social security taxes withheld you will only pay the 12.9% rate on the first $94,200 that you earn for 2006 no matter what the source. For example if you had wages of $40,000 from which FICA tax was withheld and you have $100,000 from self employment, then only $54,200 of your self employment earnings would be subject to the 12.9% rate.

Answer 2

easiest explanation is go to www.irs.gov and in the search box type in calculating self employment tax. or talk to a tax consultant.
they reason i say that is is all depends on your state, how much you make, if you work out of your house, what type of business, your write offs.etc. you have a lot of factors.

Answer 3

In US you owe double FICA & double Medicare on self-employed earnings. 15.3% less small cr. Can then take 1/2 that off taxes (but only as a deduction so not getting too much off) on front page of 1040. Must file schedule SE

Answer 4

firstly we need to calculate the total income from the businee wich we are in now an calculate your own income from other sources other than your own business then add the salary if you are maintaining that entry for yourself as a salary and then the amount wich is totalled is the GTI gross total income, then less the deductions as per sec 80c to 80u then remaining is your net income on which you wil pay the tax as per slab