Self-Employment Tax: Nina's $20,559 Bill, Built Step by Step

Nina earns eighty-five thousand dollars freelancing, and her total tax bill is twenty thousand five hundred and fifty-nine dollars: twelve thousand and ten dollars of self-employment tax plus eight thousand five hundred and forty-nine dollars of income tax, or five thousand one hundred and forty dollars per quarter. The rule: set aside roughly twenty-five percent of every invoice the moment it lands. Run your own numbers with the self employment tax calculator: https://easyfinancecalc.com/self-employment-tax-calculator/