Everything You Need to Know About Self-Employment Tax

When you start working for yourself, you might have to pay different taxes, including the federal self-employment tax. Michael Keenan of Yahoo!Finance explains.

The IRS considers you self-employed when you’re in business for yourself, such as an independent contractor or if you have a sole proprietorship, or are a partner in a partnership, including an LLC that is taxed as a partnership. Read on to learn how to calculate self-employment taxes, no matter which state you live in.