Self-Employment Tax – is an income tax levied on self-employed taxpayers. It consists of two parts-a Social Security tax and a Medicare tax.

Hobby or Business – a hobby is an activity from which you are not attempting to earn a profit.

Making Estimated Tax Payments – The self-employment tax rate is 15.3 percent; 12.4 percent of it goes to Social Security and 2.9 percent of it goes to Medicare. As a self-employed taxpayer you pay both the employee and employer portions.

Self-Employed Deductions Checklist –

Advertising and promotional expenses

Car and truck expenses

Cost of products that you resell or cost of materials if you manufacture things for customers

Depreciation of various items, including vehicles, office equipment, cellular phones, and   

computer hardware.

Fees associated with professional organizations, such as the Chamber of Commerce, a trade union, or business association.

Half of your self-employment tax

Health insurance premiums for employees

Home-office expenses

Insurance

Meals and entertainment expenses

Mortgage interest or business property

Office lease or rental payments, and any repairs or maintenance expenses

Office supplies and postage

Professional fees for lawyers, financial advisors, Web site designers, or anyone who assists you in 

the conduct of your business.

Start-up costs

Subscriptions to business-related magazines, newsletters, and fee-based web sites.

Taxes and licenses

Tax preparation fees for business-related forms and schedules

Travel expenses

Utilities

Wages to employees, if you have any