If you are an entrepreneur who runs your own business, it means you have chance to get a tax deduction up to half of your self-employment tax. The government counts your income as self-employment includes guaranteed payments from partnership, net profit from schedules F or C and wages from S corporation. Self Employment Tax Deductions can be gotten easily because you have and run your own business. It does not a matter, whether you have it on the side or full-time because government never considers about it. As long as you have a business and it is profitable, you have chance to apply tax deduction.
You do not need to cheat if just want to have Self Employment Tax Deductions. You have chance to take the legal way because it is something easy to do. If you have one of the businesses below, then it means you can take the deductions.
The businesses are home office, office supplies, furniture, software and subscriptions, mileage, insurance premiums, retirement contribution, social security, telephone charges, child labor and travel, meals, entertainment and gifts.
However, you must realize that if you are running one of those businesses, you will automatically get the Self Employment Tax Deductions because there are procedures you have to follow. The regulation has determined the formula to calculate how much deduction you can get.
Even it sounds promising and profitable, we have to tell you that maybe when you try to take the Self Employment Tax Deductions there will be something you have to do. Taking this opportunity is not as easy as it looks even maybe, it will be complicated and spends too much of your time. If you think that you have no ability to take this opportunity, it is better for you to forget about it and choose another option, which is asking tax return from CPA.