The law sets the self-employment tax rate as a percentage of your net earnings from self-employment. This rate consists of 12.4% for Social Security and 2.9% for Medicare taxes.
Net. Tax software calculates it automatically, so it’s weird if they somehow did gross.
Mountain-Herb on
Net, as shown on Schedule C, Line 31, which flows to Schedule SE, Line 2 for the tax calculation. It would be almost impossible for a tax pro to get this wrong, unless he or she prepared the returns with a crayon on paper forms. Or unless he or she didn’t claim any business expenses. That could happen if you didn’t provide valid records, but then there should have been a conversation.
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net income
The law sets the self-employment tax rate as a percentage of your net earnings from self-employment. This rate consists of 12.4% for Social Security and 2.9% for Medicare taxes.
[https://www.irs.gov/taxtopics/tc554](https://www.irs.gov/taxtopics/tc554)
Net. Tax software calculates it automatically, so it’s weird if they somehow did gross.
Net, as shown on Schedule C, Line 31, which flows to Schedule SE, Line 2 for the tax calculation. It would be almost impossible for a tax pro to get this wrong, unless he or she prepared the returns with a crayon on paper forms. Or unless he or she didn’t claim any business expenses. That could happen if you didn’t provide valid records, but then there should have been a conversation.