It depends on your viewpoint. All earned income is really taxed at the same rates, but there are factors that can make it seem like certain income is getting taxed more. There are two factors that can make your LLC income seem like it is taxed at a higher rate. The one sure reason is self-employment tax. When you are an employee, you are having Social Security and Medicare tax taken out of your paycheck, and employees only pay half of the amount; the employer pays the other half. Also, Federal and State taxes are withheld, so you don't have to pay these in at tax time either.
When you are self-employed, (LLC income), you not only have to pay regular tax but the self-employment tax, which is the full amount of Social Security and Medicare. On top of that, you are paying Federal (as well as State and perhaps Local) taxes as well. Those add up (sometimes 30 to 35 percent of you self-employment income, when all is said and done). If you haven't made estimated payments, you will see the difference in your return for sure.
And, while the self-employment income in and of itself is not taxed at a higher rate, there is the possibility that having additional income is pushing you into higher tax brackets. If that happens, all of your income above the tax bracket line is being taxed more, but it will seem like it is specifically the LLC income that is causing the effect.
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