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| Re: ''Don't let anybody tell you that businesses create jobs'' (1236624) | |||
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Re: ''Don't let anybody tell you that businesses create jobs'' |
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Posted by Dave on Sun Oct 26 16:55:24 2014, in response to Re: ''Don't let anybody tell you that businesses create jobs'', posted by SelkirkTMO on Sun Oct 26 13:20:28 2014. Leave accounting to your CPA and/or tax attorney, Selkirk. It's not your strong suit.You get to reduce self-employment income by half of the self-employment tax before applying the tax rate. For example, say that your net self-employment income is $50,000. That's the amount you report as taxable for income tax purposes on Form 1040. But when figuring your self-employment tax on Schedule SE, Computation of Social Security Self-Employment Tax, the taxable amount is $46,175. Not paying the 15.3% tax on $3,225 difference in this example saves you $493. You also can claim 50% of what you pay in self-employment tax as an income tax deduction. |
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