Tax clarity
Self-Employment Tax Calculator
A freelancer wants to know what $80,000 of income actually means after self-employment tax.
Why this example matters
Most people know 1099 taxes feel heavier, but they cannot see the exact employer-plus-employee tax logic that creates the difference.
Best sent when
Send this when someone understands that contractor taxes are higher in theory but wants to see the exact math driving the gap.
What becomes visible
- The 92.35% adjustment before the 15.3% rate applies
- The Social Security and Medicare logic behind the total tax
- The deduction created by paying half of that self-employment tax
Formula sketch