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Investors & landlords
As a schedule C Sole-Proprietorship, you are not allowed to pay yourself as an employee.
Self-Employment tax will be calculated for you based on your profit/income. It is the equivalent of FICA (Social Security Tax).
Since as a schedule C you pay both halves (when as a W-2 employee, your employer pays half) you get half of that as a credit, the software figures all that.
You should also get the Qualified Business Income Deduction where 20% of the profit is non-taxed. Again, the program calculates that for you.
You setup the business and enter expenses and income.
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March 14, 2024
8:57 PM