Anonymous
Post 04/03/2014 19:47     Subject: Self-employment tax
what I don't get is why have I have to estimate on yearly income when I don't know what I"ll be earning in the coming year. I know it's just an estimate, but why I can't I estimate based on quarterly projections? That's more realistic.
Anonymous
Post 04/03/2014 18:51     Subject: Self-employment tax
No worries...the income tax is pretty insidious
Anonymous
Post 04/03/2014 17:13     Subject: Self-employment tax
Not sure how "individual" got corrected to "insidiously". Sorry about that.
Anonymous
Post 04/03/2014 12:57     Subject: Self-employment tax
Anonymous wrote:If speaking strictly about the self employment tax (SS and Medicare, NOT the insidiously income tax on the business proceeds), it is calculated based on your business net profit separately from the 1040, so 1040 AGI won't reduce the self employment tax. Refundable credits would offset the self employment tax amounts, the same way they would be refunded to you even if your tax for the year was Zero.


Thank you!
Anonymous
Post 04/03/2014 12:41     Subject: Self-employment tax
If speaking strictly about the self employment tax (SS and Medicare, NOT the insidiously income tax on the business proceeds), it is calculated based on your business net profit separately from the 1040, so 1040 AGI won't reduce the self employment tax. Refundable credits would offset the self employment tax amounts, the same way they would be refunded to you even if your tax for the year was Zero.
Anonymous
Post 04/03/2014 11:48     Subject: Self-employment tax
Can self-employment tax be offset by refundable tax credits such as the EITC? Or is it only reduced by reducing your AGI?