Your business earns $100k in revenue and has $50k in business expenses, that’s a $50k profit on your form Schedule C. Because Self-Employment taxes are the first round of taxes they often are the larger amount you pay! Most people fixate on income taxation because of the higher rates, but they are missing the big picture. Round one of your taxes is made up of Social Security and Medicare or an estimated 15%. ![]() ![]() You might be surprised to learn Self Employment taxes are almost always more important. You read that right: you first pay Self-Employment taxes and pay again via income taxes. ![]() There’s one simple idea that will put you ahead of nearly all small business owners, in your tax knowledge.
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