Self-Employment Tax
Definition
The US Social Security and Medicare tax paid by self-employed individuals on net self-employment earnings, covering both the employee and employer shares that an employer would otherwise split.
Related Terms in US Tax
Qualified Business Income (QBI) Deduction
A US deduction under Section 199A allowing eligible owners of pass-through businesses to deduct a portion of their qualified business income, subject to income thresholds and limitations.
Standard Deduction (US)
A fixed amount US taxpayers can subtract from income instead of itemising deductions, varying by filing status and adjusted annually. Taxpayers choose whichever is larger — the standard deduction or itemised deductions.
Itemized Deductions
Specific US deductions — such as mortgage interest, state and local taxes within limits, and charitable gifts — claimed in place of the standard deduction when they total more, reducing taxable income.
Adjusted Gross Income (AGI)
A US taxpayer's total gross income less specific above-the-line adjustments. AGI is the starting point for many deductions, credits and phase-out thresholds.
Stop memorising terms — let HelloBooks do the work
AI-assisted bookkeeping that handles invoicing, GST, reconciliations, and reports automatically. Free to start.