What tax coverage do self-employed individuals receive through their tax payments?

Self-employed individuals contribute to Social Security and Medicare through their tax payments, specifically via self-employment tax. This tax is comprised of both the employer and employee portions of Social Security and Medicare taxes, which means that self-employed individuals pay a total rate of 15.3% on their net earnings—12.4% for Social Security and 2.9% for Medicare. This system allows them to earn credits towards Social Security benefits, which can include retirement benefits as well as disability and survivor benefits.

In addition, these tax contributions also provide self-employed individuals with access to Medicare once they reach the age of 65, provided they have paid into the system for the requisite number of years. Therefore, self-employed individuals are indeed covering both Social Security and Medicare through their tax payments, making this the correct answer.