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Retirement tax questions
Your blended tax rate includes self-employment tax. Self-employed individuals pay income tax + Social Security and Medicare tax.
Since SSI and Medicare was not withheld from your pay, it's added to your tax return on Form 1040, Schedule 2, line 4 and Schedule SE. Since it's part of your tax return, it becomes part of your blended tax.
Last year, your employer withheld SSI and Medicare so it was not part of your blended tax.
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March 26, 2023
6:14 AM