Self-Employment Tax vs. Income Tax: Understanding the Differences
As the gig economy continues to grow and more individuals embrace freelancing, contracting, and entrepreneurship, the distinction between self-employment tax and income tax becomes increasingly important. For those who are self-employed, understanding how these taxes differ and how they impact your financial obligations is crucial to managing your finances effectively. This article delves into the key differences between self-employment tax and income tax, offering insights on how to navigate these taxes as a self-employed individual. What is Income Tax? Income tax is a tax levied by the government on the earnings of individuals and businesses. This tax is...
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