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Social Security Taxes and Medicare Taxes withheld
In addition to my regular pay, my employer pays me sales commissions and reports it on a W-2 as a statutory employee. Social security and Medicare taxes are withheld but no income taxes are withheld. After reporting the commissions on schedule C and not having to file schedule SE, it seems to me I should be entitled to deduct one-half the SS taxes withheld as a normal business would. If my assumption is correct; how would I accomplish reporting it on Turbo Tax?
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Deductions & credits
As a statuary employee, your employer is withholding half from you and the employer is paying the other half. You are paying only half of the social security, A self-employed person pays 100% of the social security and then gets the credit for half of that on Schedule C.
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Deductions & credits
WAIT A MINUTE .... if you got a W-2 for the commissions separate from the regular W-2 with the box 13 stat emp box marked you do NOT enter that income on the Sch C ... it is entered ONLY in the W-2 section and the EXPENSES will be reported on the Sch C. This way you do not get hit with SE taxes a second time.