Self-employed individuals, freelancers, and small business owners use IRS Form 1040 Schedule SE to report FICA taxes, which fund Social Security and Medicare. Since the IRS considers self-employed people as both employer and employee, they are responsible for paying both halves of the FICA taxes...
FICA taxesare based on gross income, which is your income before taxes are deducted. Your net income will reflect your take-home income after taxes, which includes the amount deducted from FICA taxes.14 The Bottom Line The Medicare tax is a payroll tax in the United States that funds the ...