Summary

This lesson explained how to calculate the self-employment tax for residents of Puerto Rico who earned self-employment income in Puerto Rico.

• Self-employment tax is a Social Security and Medicare tax primarily for people who work for themselves, intend to make a profit, and have net earnings from self-employment of $400 or more
• There are three methods used to compute self-employment tax:
  • Regular method
  • Nonfarm optional method
  • Farm optional method