If you are self employed, you get to deduct half of the self employment tax (aka FICA). That makes it essentially the same as if you worked for a company as they would be able to deduct their portion of FICA as a business expense.
Quote:
Originally Posted by golfing eagles
I agree. And here is something more unfair: If you are self-employed, you pay 6.4 % SS tax up to whatever the current limit is, and 1.25% Medicare tax, no limit on income. But you pay DOUBLE that since you are your own employer, 15.3% off the top. But wait, there's more-----you pay income tax on that 15.3% that you never see!!!!!! Yes kiddies, that's right. Let's say you made 100,000. You pay 15,300 in FICA, then income tax on the full 100K. DOUBLE TAXATION!!!!! Robin Hood strikes again.
|