Use this calculator to estimate your self-employment taxes. Normally these taxes are withheld by your employer. However, if you are self-employed, operate a farm or are a church employee you may owe self-employment taxes. Please note that the self-employment tax is 12.4% for the FICA portion and 2.9% for Medicare.
Additional Medicare Tax
This calculator does not include any required amounts for the Additional Medicare Tax. This tax applies to a household and not an individual tax payer. Joint filers with over $250,000 in earned income, single filers with over $200,000 in earned income and married persons filing separately with over $125,000 in earned income will owe an additional 0.9% of the amount exceeding these thresholds. These thresholds are not index to inflation. This is paid only by the tax payer, there is no additional employer amount. This additional tax is calculated on your full tax return and while it is directly related to your earned income it is not calculated with your self-employment taxes.
Net Farm Income Or Loss
This is your net farm income or loss. This should include both the net farm profit or loss from Schedule F along with any income from farm partnerships. Please note that if your gross farm income is $2,400 or less and your net farm income is $1,733 or less there is a ‘Farm Optional Method’ for calculating income subject to self-employment taxes. If you qualify for this optional method it may produce a slightly lower income subject to self-employment taxes. This calculator assumes that you will not use the ‘Farm Optional Method’. For more information see IRS Schedule SE Part II, Optional Methods to Figure Net Earnings.
Net Business Income Or Loss
This is your net income from businesses and partnerships. These amounts are reported on IRS Schedule C for sole proprietorships and IRS Schedule K-1 for partnerships. Do not include any farm partnerships; this income should be included in the net farm income or loss.
In most cases you will need to pay self-employment taxes on salaries received for services performed as a minister. This also includes the rental value of a home and the value of meals and lodging provided to you, your spouse and your family. Include income received for services performed as a minister in your ‘net business income or loss’, do not include it in ‘Church employee income’. There are a number of exceptions for ministers and members of religious orders, in regards to self-employment tax liability. Please see the detailed instructions for self-employment taxes as provided by the IRS to determine how these rules might apply to your specific situation.
Church Employee Income
If you have more than $108.28 in church employee income, you will need to pay self-employment taxes on that income. This does not include any income you received as a minister, which was entered above.
Employer Paid Income
Enter your total employment wages and tips that you have been paid where Social Security taxes have been deducted. In 2018, income up to $128,400 is subject to the 12.4% tax paid for the Social Security portion of self-employment taxes (FICA). Your employment wages and tips should have a 6.2% deduction for Social Security from your pay, and an additional 6.2% payment from your employer that does not appear on your paycheck. If your total wages, tips and self-employment income exceed $127,200 you only owe Social Security on the difference between your self-employment income and $127,200. If your total employment wages and tips exceed $128,400 in 2018 you will not owe any additional FICA taxes for the year.
Net Church Employee Income
This is your total church income subject to self-employment taxes. Like your other self-employment income, this total is calculated by multiplying your church employee income by 92.35%. If this amount is less than $100, you do not owe any self-employment taxes on this income.
This is your total income subject to self-employment taxes. This is calculated by taking your total ‘net farm income or loss’ and ‘net business income or loss’ and multiplying it by 92.35%. This is done to adjust your net income downward by the total employment tax that would have been paid by an employer, had you not been self-employed. If the result is less than $400.00, you do not owe any self-employment tax on this income.