Complete self-employment tax calculation: SE tax (15.3%), federal income tax, all key deductions (half SE tax, SEP-IRA, health insurance), and quarterly estimated payment amounts.
Self-employed individuals pay both the employee (7.65%) and employer (7.65%) portions of FICA — 15.3% total. However, you deduct half of SE tax from gross income, reducing your federal income tax. Three key deductions uniquely available to the self-employed: half of SE tax, SEP-IRA/Solo 401k contributions (up to $69,000), and health insurance premiums.