When you set out upon the road of self employment, you will find that the tax burden you’ve taken up is a rather daunting challenge. It doesn’t have to be. The first time you find yourself calculating self employment tax to make quarterly payments, it may take quite some time. However, after the first year of making such payments, it becomes far easier to handle every time.
Generally, the self employed pay twice in Social Security and Medicare tax as the more conventionally employed do, since there is no employer to match your contribution. This is partially offset by being able to deduct half that amount from your income tax, but those savings don’t come ’til the end of the year.