Any way to reduce my Self-employment tax that I pay without decreasing my Income? - self employment calculator with deductions
I know that self employment tax is 15.3 percent.I earn $ 70,000 per year, and I am independent. I have one 1099 forward, that my income. I have one of these computers online Turbo Tax and had more deductions. To do nothing about the income, but stated that it had nearly 10,000 in self-employment tax. Is it possible to avoid having to pay or reduce it easy? Thank you.
Sunday, February 14, 2010
Self Employment Calculator With Deductions Any Way To Reduce My Self-employment Tax That I Pay Without Decreasing My Income?
8 comments:
There are no other options. If you are an employee, the same amount of tax due, but would be paid by the withholding tax and the employer.
You need these expenses against your income from employment. Costs include all those listed in Annex C.
401k contribution to their own retirement or other taxes on income, not lead to their own work taxing. If you are an employee, however, the payment of your pension plan the employee has a right to deduct in connection with your wages. However, you must pay half of the staff of the SS and Medicare.
Contributions to health insurance or health insurance to their employees are treated like pension contributions.
Depending on the nature of your business you can look in the formation of an S Corporation, if the answer to a portion of their payments in the form of dividends, the SCorporation, may go unnoticed by some taxes on self-employment, and pay taxes on self-employment only to payments received for services rendered.
Realistically, I wanted to 15.3% SE tax, both Social Security and Medicare is to you during the year paid. Your other option would be to put your income in a tax-deferred retirement plan for how to get into 401 (k), September or Traditional IRA. A financial adviser can help you.
If you do not want to reduce your income, it would be best quarterly estimates to the IRS to reduce your debts at the end of the year. If this is not paid as a penalty, paid the balance.
It makes no sense. If you had your Schedule C, to prepare 1.099 receipt and took the deductions and charges a higher income then. "Then you should start with a rejection or loss on your Schedule C. There would be no end of self-employment tax due.
Unless what you are saying is that you have detailed the deductions and finished with a net profit of Schedule C, then it would make sense.
So the only way to reduce your SE tax is to reduce their hour of network C, in fact, the claim more deductions for income from List C. Offset
If you W-2 wages, you must take the credit for the FICA and Medicare too.
Appendix C may deduct expenses related to business.
Self-employed or independent contractors. You must use your income and expenses on Schedule C or C-EZ report (Form 1040). This income is subject to SE tax at 15.3%. Read about self employed (or independent contractor) tax return and paying the estimated tax http://taxipay.blogspot.com/2008/04/tax- ...
When you retire, one day you will be glad you have won all the benefits. In this case, do not fudge. It's like shooting yourself in the foot.
If you have no income, you have no income tax. You still have to pay SS and Medicare
15.3 is that social security and must be paid. There is no option.
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