The self-employed person's FICA tax rate for 2014 is 15.3% on the first $117,000 of net income and then 2.9% on the net income that is in excess of $117,000.

The self-employed person's FICA tax rate for 2014 consists of the following:

  • the employee's portion of the Social Security tax, which is 6.2% of the first $117,000 of net income

  • the employer's portion of the Social Security tax, which is 6.2% of the first $117,000 of net income

  • the employee's portion of the Medicare tax, which is 1.45% of all net income (no cap or limit on net income)

  • the employer's portion of the Medicare tax, which is 1.45% of all net income (no cap or limit on net income)

In other words, the self-employed person's FICA tax rate for the year 2014 consists of the Social Security tax of 12.4% (6.2% + 6.2%) of the first $117,000 of net income plus the Medicare tax of 2.9% (1.45% + 1.45%) of every dollar of net income. This means that in 2014 a self-employed person's net income that does not exceed $117,000 will have a FICA tax of 15.3% (the 12.4% of Social Security tax plus the 2.9% of Medicare tax).

There is also a Medicare surtax that applies to higher income taxpayers. Information on the Medicare surtax and other income tax information can be found at www.irs.gov.

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