Did you know that even entrepreneurs have to pay taxes 👀

Self-employment tax is a tax on income from self-employment. 💸

It is also known as the SE or SECA tax. 🤓

Even if you’re a babysitter or camp counselor, you may still qualify for self-employment tax unless you are an official “W-2” or full-time employee with official company benefits. 🤑

Most employees under 18 are actually contractors, so many young workers qualify for self-employment tax, even if they don’t have their own small business yet. . . 😎

Self-employment taxes are paid based on income, rather than profits, which means that you will owe taxes even if your business isn't profitable. 💸

Additionally, the self-employment tax applies to all net earnings over $400. 💰

Since you don’t have an employer to pay social security tax, you have to pay social security tax on income over $600/year 🦺

💡Social Security Tax = taxes that go to your retirement benefits

So, now you know a little bit more about self-employment tax! 🥳