Self-Employment Tax Benefits and Deduction Strategies

Learn about proven strategies to reduce self-employment taxes and comply with the strict guidelines of the IRS.

Self-employment is a tax that small business owners often do not consider in their tax planning and can significantly increase a tax bill beyond projections. Without planning, this additional tax can have a serious impact on the bottom line. This tax is also an area in which proper planning and business strategy can significantly reduce or even avoid the liability altogether. As the government seeks to increase its tax revenue, compliance in proper reporting of income to recognize self-employment tax-eligible income has become an area of target enforcement for the Internal Revenue Service. This presentation will highlight what the self-employment tax is, how it differs from traditional Social Security and Medicare taxes (FICA) withheld from employees, and discuss strategies one can use to manage and minimize the self-employment tax specifically. This presentation also examines proposed legislation and its impact on the recognition of this tax, as well as recent judicial decisions impacting the enforcement and application of the current rules.