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Is self-employment tax affected by a schedule C?
I did a standard deductible and have 0 taxable income but still have to pay self-employment tax. I am wondering if I do a schedule C instead, still bringing my taxable income to 0, will it bring down the self-employment tax as well?
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Is self-employment tax affected by a schedule C?
When you do a Schedule C, Profit or Loss from Business, self-employment tax is calculated so yes, a Schedule C goes hand in hand with self-employment tax.
Standard Deduction is for the personal side of your income taxes versus Schedule C and SE taxes are your business side.
Please read the TurboTax FAQ:
Why am I paying self-employment tax?
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Is self-employment tax affected by a schedule C?
When you do a Schedule C, Profit or Loss from Business, self-employment tax is calculated so yes, a Schedule C goes hand in hand with self-employment tax.
Standard Deduction is for the personal side of your income taxes versus Schedule C and SE taxes are your business side.
Please read the TurboTax FAQ:
Why am I paying self-employment tax?Related discussions
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