![]() ![]() These expenses count as tax deductions and reduce his net self employment income to $54,000. In early 2023, Joe joined Bench and his bookkeeper located $6,000 worth of contractor expenses that he was not aware of. (For simplicity, we assumed Joe is single with no children and no other types of taxable income to consider.) ![]() The SE tax on $60,000 is $8,478 (generally only 92.35% of SE income is subject to SE tax) and the income tax is $4,865, for a total of $13,343. He has to pay 15.3% self employment (SE) tax plus income tax based on his individual tax rate. Joe is a self-employed writer and had $60,000 in self employment income in 2022. Making the most of all your available tax deductions can save you hundreds-even thousands-of dollars at tax time. ![]()
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