Self-employed individuals will pay income tax and self employment tax when they file their income tax return. The self-employed tax rate is 15.3% of 92.35% of your self-employment income. You are paying both the employer portion and the employee portion of the Medicare and social security tax. Once your self-employment is calculated it is added to your 1040 return. The self-employment tax you pay does not offset your income tax. Your income tax will be calculated based on your total income exceeding the standard deduction.
For more information on Self-Employment Tax and Income Tax, see the links below:
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