Self-employment income, after expenses, is taxed at approximately 15.3%, and thus, tax planning should be made accordingly.
In addition, if your income reaches a certain threshold based on your filing status, additional tax planning (estimated taxes) should be made based on your filing status.
Tax year 2023 filing thresholds by filing status
| Single |
Under 65 |
$13,850 |
| Single |
65 or older |
$15,700 |
| Head of household |
Under 65 |
$20,800 |
| Head of household |
65 or older |
$22,650 |
| Married filing jointly |
Under 65 (both spouses) |
$27,700 |
| Married filing jointly |
65 or older (one spouse) |
$29,200 |
| Married filing jointly |
65 or older (both spouses) |
$30,700 |
| Married filing separately |
Any age |
$5 |
| Qualifying surviving spouse |
Under 65 |
$27,700 |
| Qualifying surviving spouse |
65 or older |
$29,200 |
Tax year 2023 filing thresholds by filing status
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