I hear if you’re self-employed, you get taxed twice. Is this true?

I’m considering whether to start a home-based tutoring business, or to continue to work for others.


If you are self employed and make more than $400 for the year, then you will have to pay Self Employment tax. It will be 15.3% of your net profit. It includes SS tax and medicare tax.

However, since you are self employed, you get to deduct half of your self employment tax when figuring your taxable income.

{Starting a home based tutoring business} Marketing Concepts


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