What is the Medicare tax rate for self employment?

Question

I thought my quartly taxes were 15.3% medicare PLUS whatever my income tax would be but the rep. are IRS said that if I just multiply my income times 15.3% that should cover all of my taxes, income and medicare due on my income. Concerned that she may have been wrong I called and spoke with a different IRS agent who told me the exact same thing. Is that right?

My self employment income gross was $25,000. I'm looking at roughly $11,000 is deductions.

Answer 1

If your business profit is $14K, you would owe SE tax of $1,978 ($14K x .9235 x .153). That assumes you did not have W-2 wages in which you maxed out on social security.

The regular income tax is still impossible to say, as much more information would be needed. If the $14K profit is the entire income in the househould, and you file MFJ there would be no regular income tax owed.

Answer 2

Could be, but without knowing what your income is, it's not possible to say.

If you're single and your net income from the business is less than $8,750 there won't be any income tax but there will be Self-Employment tax if the net income from the business is more than $400.