from your paychecks 1.45% is subtracted for compensation subject to medicrare. for net self employment income 92.35% is subject to 2.9% medicare taxes. in addition , taxpayers who make over $200,000 as individuals or $250,000 for married couples are subject to an additional 0.9 percent tax on Medicare wages and net self-employmen t income.
for wages and tips subject to social security taxes reported on w-2s up to 6.2% is taken from your paychecks on up to maximum of $147,000 for 2022. this $147,000 is reduced by the amounts in box 3 and 7 of w-2s. if they exceed this amount none of your self-employment income is subject to social security taxes. if not, then the remaining balance or 92.35% of net-self-employment income, whichever is less, is subject to 12.4% social security taxes. 1/2 of self employment taxes is a deduction to adjusted gross income.
schedule 1040-SE is used to compute these taxes.
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