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Self-employment tax is the equivalent of the employer plus the employee’s share of social security and Medicare taxes (generally 10.4% in 2012).This is a tax in addition to any potential income tax on the same income.Self-employment income can be like that, particularly if you do not plan well.If you are a sole proprietor, or operating as a Single-Member LLC (SMLLC), then your net profit is subject to self-employment tax.That site may have a privacy policy and security that is different from this Citibank Website.

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