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When you file as Self-Employed, you pay all the FICA (social security) tax on the self-employed income.
This means you are paying the employee share (you) and the employer share (you). Since you pay the employer share, that is a business expense.
That is the deduction.
All self-employed Taxpayers get that deduction.
Thank you for your response. I am technically an employee of a foreign organization, and so I do not qualify for the deduction that you mentioned. Therefore, I need to pay the full self employment tax. How can I do that?
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