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You are either an employee who receives a W-2 or you are a freelancer (self-employed) who receives a 1099. Your income tax rate is the same, the difference is your social security and medicare taxes. As an employee, you pay half and your employer pays the other half. As a self-employed freelancer, you are both the employer and employee, so you pay all of it (15.3%). You actually pay more tax as a self-employed person, but you can deduct expenses from your income which will help to lower those taxes.
You are either an employee who receives a W-2 or you are a freelancer (self-employed) who receives a 1099. Your income tax rate is the same, the difference is your social security and medicare taxes. As an employee, you pay half and your employer pays the other half. As a self-employed freelancer, you are both the employer and employee, so you pay all of it (15.3%). You actually pay more tax as a self-employed person, but you can deduct expenses from your income which will help to lower those taxes.
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