Keep in mind that you are paying two (technically three) different types of taxes here being self-employed:
- The $32,000 in taxable income taxed at approximately 12% is federal income tax
- While the facts don't provide sufficient detail on exactly what your SE taxable income is, this tax is for two types of tax:
- Social Security tax is 12.4%
- Medicare tax is 2.9%
- Combined 15.3% SE tax
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
