I know this old topic but I just found.
So let’s ponder what would happen if a person does deduct their own wages and gets audited.
The wages go back into profits and get taxed. But if they were reported on the same return…. Then the net change is zero? I mean the employers portion on the social security/ med are the same as what the individual would owe… the taxes are paid in under the ssn of the owner so still credits as paid. And likely IRS wouldn’t flag an account unless the schedule C business doesn’t have an TEIN. Just saying. It would almost be the same as costing advertising as office supplies…. Bad form but the finished product is the same
