Can someone explain this to me? "You are allowed to deduct 50% of what you pay in self-employment tax as an income tax deduction on Form 1040. This deduction is available whether or not you itemize deductions."
Is this automatically done or is this something I am supposed to be inputting somewhere on TurboTax?
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The TurboTax program reports the 50% self-employment tax as an adjustment to income on Schedule 1 Line 15. This amount flows to Form 1040 Line 10.
Yes. TurboTax calculates your self-employment (SE) tax on Schedule SE based on your net profit reported on your Schedule C(s). That amount is automatically reported as "Other Taxes" on your of Form 1040. Fifty percent of that amount is automatically entered as an “adjustment to your income” (tax deduction) on your Form 1040. There is nothing that you need to do.
Please review the TurboTax article The Self-Employment Tax for more information.
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