Sourdough 2025 / 2026

Half of self employment tax is deductible

The IRS lets you deduct half of your self-employment tax.

  1. Self-employment tax has two halves. When you're a W-2 worker, your employer pays one half. As a gig worker, you pay both, but the IRS lets you deduct that 'employer half' against your income tax.
  2. On $33,000 of net profit, your SE tax is $4,663 and the deduction is $2,332.
  3. Same math in 2026; the rates haven't changed.
  4. This deduction lowers your taxable income, which lowers your federal tax, your QBI math, and your California tax.

SourceIRC §164(f); Schedule 1 line 15

Note. General information, not tax advice. Tips reflect federal law and California rules where noted, current as of May 2026. For advice specific to your situation, consult a licensed CPA or Enrolled Agent. Sourdough Tax, Inc. is not your tax advisor unless we have explicitly accepted that engagement in writing.