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abt1120702aa
New Member

Deduct self employment tax portion

Under self emloyment taxes do I get to deduct any part of that if Im the employer?
1 Best answer

Accepted Solutions
BMcCalpin
Level 13

Deduct self employment tax portion

Yes, as a sole proprietor, you are able to deduct 50% of your self-employment tax "above the line", that is, as an adjustment to gross income on Schedule 1 (1040).

 

 

This will be done automatically for you when you complete enter income and expenses for Schedule C (your business).

TurboTax will generate a Schedule SE to compute the self-employment tax based on 92.35% of the net income from your Schedule C, and then TurboTax will carry 50% of that self-employment tax to Schedule 1 (1040).

You don't have to do anything but complete the Schedule C/business

 

[Edited 4/2/2020 1:56 pm CDT - updated for 2019]

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2 Replies
BMcCalpin
Level 13

Deduct self employment tax portion

Yes, as a sole proprietor, you are able to deduct 50% of your self-employment tax "above the line", that is, as an adjustment to gross income on Schedule 1 (1040).

 

 

This will be done automatically for you when you complete enter income and expenses for Schedule C (your business).

TurboTax will generate a Schedule SE to compute the self-employment tax based on 92.35% of the net income from your Schedule C, and then TurboTax will carry 50% of that self-employment tax to Schedule 1 (1040).

You don't have to do anything but complete the Schedule C/business

 

[Edited 4/2/2020 1:56 pm CDT - updated for 2019]

kbraun689
New Member

Deduct self employment tax portion

Is this the case for TurboTax Freedom edition as well--it's handled automatically?
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