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.
Taxable Income for FICA & Medicare = (Taxable Net Income + Self-Employment Deduction) x 0.9235*
Taxes Owed for FICA & Medicare = Taxable Income for FICA & Medicare x Current FICA & Medicare Tax Rates
*This number is determined on the Schedule SE form. You can learn more about Self-Employment taxes and the Schedule SE form here.