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June 6, 2019
Solved

We are dismayed to find that our tax credit isn't being applied to the self-employment tax for my LLC (disregarded entity)! Why not?

  • June 6, 2019
  • 1 reply
  • 0 views
2018 is the first year it has had enough profit to owe taxes, so we have not encountered this before. We were expecting our tax credit to cover that amount (nearly $2000).  Is there anything we can do to adjust this?
Best answer by Texas Roger

Tax credits can never offset self employment taxes. Tax credits can only offset income taxes. There is nothing you can do. 

1 reply

Level 15
June 6, 2019

Tax credits can never offset self employment taxes. Tax credits can only offset income taxes. There is nothing you can do.