Home and Business

[rguzzard]

Using the Home and Business software I have a total tax due. I need to determine the tax due generated from the business and from personal. Now that all the info is loaded, is there an easy  way to determine the separate balances?

[PeterM · Accepted solution]

Line 57 of the Form 1040 (page two) is the amount of self-employment tax (business), the rest of your tax is a function of your taxable income and tax credits (if any). Half of the amount on Line 57 can be found on Line 27 of the Form 1040 (page one) which is used as an adjustment to income.

The self-employment tax (also called the SE tax) is the Social Security (FICA) and Medicare tax paid by self-employed individuals.

When you work for someone, your employer pays half of your FICA and Medicare and you pay the other half. But when you're self-employed, you pay all your FICA and Medicare tax (the SE tax) on top of your income tax. That's because the IRS considers you both employer and employee.

Unlike employees, self-employed taxpayers are able to deduct the "employer" half of their SE tax as well as mileage, vehicle depreciation, home office expenses, and other things that most wage-earners aren't able to claim.

https://ttlc.intuit.com/questions/1900698-what-is-the-self-employment-tax