Article Date:
June 2021


Word Count:
763

 

 

How to Deal with the New $142,800 Base for Self-Employment Taxes


What happens when lawmakers enact a new tax?

 

It starts small.

 

It looks easy.

 

In 1935, the self-employment tax topped out at $60. Those 1935 lawmakers must be twirling in their graves with the new rules for 2021, which levy the following taxes:

 

·

A self-employment tax of up to $21,848, which comes from the 15.3 percent rate that applies to self-employment income of up to $142,800.

·

A 2.9 percent tax that applies to all self-employment income in excess of the base amount.

 

Beware

 

You know the ... Log in to view full article.

Log in to view full article
Already a subscriber?
 
Email Address

 
Password

Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee