What is Self-Employment Tax (and why do I have to pay it?)

All self-employed people who show a profit must pay at least some Self-Employment Tax. This video dives into what the tax is, who must pay it, and how the tax is calculated. 2025 UPDATE: The maximum amount of net self-employment income subject to the Social Security portion of the Self-Employment Tax is $174,500 for 2025. Video resources: IRS Publication 334: "Small Business Tax Guide": https://www.irs.gov/pub/irs-pdf/p334.pdf IRS Schedule SE: "Self Employment Tax": https://www.irs.gov/pub/irs-pdf/f1040... For an overview of self employment as it relates to taxes, click here:    • Are you self-employed? (and don't know it?)   The Tax Geek on The Site Formerly Known as Twitter: @taxgeekusa Intro and background music: “Bluesy Vibes” - Doug Maxwell - YouTube Audio Library DISCLAIMER: The information presented in this video is for informational and educational purposes only, and is not intended to render tax advice for specific situations. If you have questions about your specific tax situation, please consult the resources linked above or consult with a qualified tax professional in your community. The information contained in this video is based on tax law and IRS regulations as of the date of publication, and may be subject to change.