ACC 613 Grand Canyon Week 5 Discussion 1

ACC 613 Grand Canyon Week 5 Discussion 1

Why are self-employed taxpayers allowed to deduct ½ of their self-employment taxes to calculate adjusted gross income? Self-employment taxes are based on 92.35% of self-employment net earnings (see Schedule SE). Does combining these two features of self-employment taxes create a greater benefit than salaried earnings on a W-2? Include references to any tax code or publications that you use for your answer.

 

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