Podcast #128: We chat with Kent C Dodds about why he loves React and discuss what life was like in the dark days before Git. Listen now.

New answers tagged

1

You have two separate things going on here, income tax and self-employment tax. Income tax will be paid on your total income, just as if it was all reported on a W2. (But you probably will have to pay something with your return, instead of getting a refund, and may need to make estimated tax payments if you continue with self employment next year.) You ...


3

You will pay income tax based on your total income ($70,000 in your example, less deductions). In addition, you will pay self-employment tax on the self-employment income. This is a separate tax, computed on Schedule SE, and added to your other taxes on form 1040. The self-employment tax rate is generally 15.3%. See schedule SE and its instructions for more ...


1

Yes, you're able to have both. See this explanation for example. Finally, if you have a 401(k) through an employer and have a SEP IRA for your self-employment income, each contribution is treated separately. You can defer up to $18,000 of your salary into your 401(k) and your total contribution is limited to $53,000 ($59,000 if over 50) after your ...


1

There's a nice guide to what the self employed can do with losses here: https://www.litrg.org.uk/tax-guides/self-employment/working-out-profits-losses-and-capital-allowance/what-if-i-make-loss The key list (there's more detail on each option on that page) seems to be: You can use the loss in the current tax year and set it against all of your other income ...


Top 50 recent answers are included