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brisingr_dras087
New Member

My self employment income already includes tax, I do not believe I should be charged Self employment tax? I have a tax letter from the company stating tax is included.

How can I upload the tax letter stating that tax is already included in my income?
4 Replies
VolvoGirl
Level 15

My self employment income already includes tax, I do not believe I should be charged Self employment tax? I have a tax letter from the company stating tax is included.

How did they pay your self employment tax for you?  Did they maybe pay sales tax?  I guess they could have sent in an estimated payment for you.  That is entered separately from your Schedule C.  Then the SE Tax is on your return and you get credit for the estimated payment (like withholding).

 

Or did they just pay you more income to cover the SE tax? You don't handle that any different.  You still will have the self employment tax calculated on your Net Profit.

brisingr_dras087
New Member

My self employment income already includes tax, I do not believe I should be charged Self employment tax? I have a tax letter from the company stating tax is included.

Short summary: Sales tax was paid on full retail of the goods. All taxes are paid on initial purchase, then the company pays the tax to the state on my behalf. 

I do not see a place to have this entered properly.

VolvoGirl
Level 15

My self employment income already includes tax, I do not believe I should be charged Self employment tax? I have a tax letter from the company stating tax is included.

Sorry I don't know how sales tax reporting works.  But that has nothing to do with self employment tax.  

Mike9241
Level 15

My self employment income already includes tax, I do not believe I should be charged Self employment tax? I have a tax letter from the company stating tax is included.

what tax is included?  for example, they may have boosted your gross pay 15% or so to cover the SE tax you have to pay but you still have to pay the SE tax. or they may have done something completely different. 

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