Quote:
Originally Posted by RickFLM4
For 2016:
Federal: 19.1% of AGI (Mostly Schedule C)
No AMT, No state
Self-employment: 9.4% (double social security up to cap, double Medicare with no cap)
Haven't finished 2017 yet.
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Finally finished 2017, which was a little better year for self-employment income vs. 2016.
Got federal down to 18% of AGI (effective rate) in 2017 by maxing out SEP-IRA, increasing contribution to HSA and wife stopped working, so that brought down AGI and federal tax.
But self-employment is up to 11% because it is based on self-employment income, not AGI after SEP-IRA, etc. So we're in about the same spot effective rate-wise. I expect to save a couple of points of federal in 2018. We'll see.