@joshwats wrote:
Hi Dave!
You said,
4. It sounds like your self-employment tax is based from a $103,772 housing allowance because of the following formula to determine self-employment tax. This is ($103,772)(.153)(.9235)=$14,663.
So wait, it thinks my housing allowance is $103,772? How? I put $23,400 in Box 14.
No. Your SE tax is on all your income that is considered "compensation" that does not already have social security taken out. Your income subject to SE tax should be $58,000 salary plus $23,400 housing allowance plus $20,000 royalties plus $900 guest speaker. Total is $102,300. So that's pretty close, I assume it will work out exactly if I had exact figures.
You don't pay SECA on only the housing allowance, you pay it on everything that is "compensation."
