[Tawilkins]

Can someone help me understand this rule. It appears as though a SE taxpayer can deduct 1/2 of the SE tax PAID. It’s a little confusing to me. An example, let’s say that I’m working on my 2012 taxes and I’m a SE taxpayer, I would deduct 1/2 of 15.3% on 2012 SE earnings up to 110,100. This wouldn’t necessarily be PAID yet, unless it’s assumed that you would have made quarterly tax payments to the IRS. Am I understanding this correct?

AUD - Done
BEC - Done
FAR - Done
REG - Oct.

[littlenumberrobot]

Think of it this way, SE tax is in place of FICA taxes. If you paid yourself wages or someone else, you would get to deduct the employer portion of those taxes. So in a similar way the IRS allows you to deduct 1/2 of the total SE tax. It's doesn't matter if you paid it or not. It's an adjustment to your income on the front page of your 1040. Just like you get to deduct an IRA contribution that you will make by the deadline. Make sense?

CA CPA - All because of the journey listed below
-----------------------------------------------------------------------
FAR - 53('10), 8/25/12 79 PASSED!
REG - 66('11), 69('12), 12/06/12 77 PASSED!!
BEC - 58('10), 74('12), 01/05/13 77 PASSED!!!
AUD - 43('11), 66('12), 69('13), 74('13) 7/29/13 85 PASSED!!!!!

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