You also need to take into consideration self employment tax. In addition to the income tax on the freelance income, you are also required to pay self employment taxes which are social security and medicare taxes.
The self employment tax rate is 15.3%. It is the sim of 12.4 social security and 2.9 Medicare tax . This is calculated on your net earnings from self employment. You are then allowed a deduction for the employer portion of the tax 7.65% .
This means that depending on your tax rate , you will pay income tax on your net earning and also 7.65 % Social Security and Medicare ( SE tax)
Here are the tax brackets:
023 tax brackets: single filers
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$1,100 plus 12% of the amount over $11,000.
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$5,147 plus 22% of the amount over $44,725.
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$16,290 plus 24% of the amount over $95,375.
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$37,104 plus 32% of the amount over $182,100.
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$52,832 plus 35% of the amount over $231,250.
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$174,238.25 plus 37% of the amount over $578,125.
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Your freelance income will be subject to income tax at your tax rate and also 7.65% of self employment tax
