 TITLE: How Are Freelancers Taxed? CONTENT: How Do Taxes Work if You're a Freelancer?\n-----------------------------------------\nAs a self-employed person, you generally must file an annual federal tax return and pay estimated federal taxes every quarter. The taxes you usually must pay are:\n*   **Self-employment tax:** The self-employment tax is a Social Security and Medicare tax that primarily affects self-employed people. It's like the Social Security and Medicare taxes that employers withhold from the paychecks of most employees. If you see the words \"self-employment tax,\" it refers only to Social Security and Medicare taxes and not any other taxes (such as income tax). For self-employed people, the Social Security tax rate for 2020 is 12.4% and the Medicare tax rate is 2.9%, for a total self-employment tax of 15.3%.\n*   **Income tax:** The IRS requires you to file a federal income tax return if your annual net earnings from self-employment (income minus expenses) add up to at least $400. END