In Hurdlr’s detailed tax calculations, you may notice that your Taxable Income for FICA and Taxable Income for Medicare is slightly lower than your overall Taxable Net Income. This is due to how self-employment income taxes are calculated.

To calculate the Taxable Income for FICA and Taxable Income for Medicare for self-employment taxes, you take the Taxable Net Income, add the Self-Employment Deduction, then multiply by .9235 per the Schedule SE form. You can learn more about Self-Employment taxes and the Schedule SE form here.

The resulting amount is then used to calculate the taxes owed for FICA and Medicare by multiplying the Taxable Income for FICA and Taxable Income for Medicare Income by the current tax rates for FICA and Medicare.

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