Types of Taxes in The United States - Self-Employment Tax

Self-employment tax is a tax consisting of social security and Medicare taxes primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. An individual figures self-employment tax (SE Tax) using Schedule SE (Form 1040). Social Security and Medicare taxes of most wage earners are figured by their employers. Also the taxpayer can deduct the employer equivalent portion of the SE Tax in figuring adjusted gross income. Wage earners cannot deduct Social Security and Medicare taxes.
For self-employment income earned in 2014, the self-employment tax rate is 15.3%. The rate consists  of two parts: 12.4% for Social Security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).