@ceasesmith wrote:
No. Why do you say your only income is mystery shopping when you state in another thread that your social security is taxed?
If you're using TurboTaxFree (right off the IRS website), it'll walk you right through everything.
Did you take 100% of your business deductions you are entitled to on Schedule C?
@ceasesmith wrote:
I'm speechless.
You're talking apples in an orange grove.
You jerk from income tax to Obamacare, which has NOTHING to do with income tax (well, MAYBE one line on the 1040). Payment for Obamacare is NOT a tax.
@ceasesmith wrote:
Yeah, just exactly what I said above -- ONE LINE ON THE 1040.
Counting as income doesn't mean it's taxed. It's counted as income to determine your various eligibilities for Obamacare
Apples and oranges.
Quit trying to do your own taxes and consult a pro.
@ceasesmith wrote:
Fine. I'm talking INCOME TAX. It's still apples and oranges.
Get a tax pro.
@johnb974 wrote:
If I make $10,000 doing mystery shopping, my self employment tax would be $1413. Of that $704 is deductible on the 1040. Is that $704 taken off the $1413? My only income is from mystery shopping. I'm using an online calculator for this.
@Sobrokeigot2dothis wrote:
@johnb974 wrote:
If I make $10,000 doing mystery shopping, my self employment tax would be $1413. Of that $704 is deductible on the 1040. Is that $704 taken off the $1413? My only income is from mystery shopping. I'm using an online calculator for this.
Sounds like you missed the party. The party is on the tax form Schedule C. One of the craziest things about the party is that you get to deduct 54.5 cents for every mile you drove while mystery shopping. That is the mystery shoppers best deduction by far. Unless you ride the bus!
@mystery2me wrote:
No, the $704 is not taken off the $1413. You still have to pay the full $1430 in self employment taxes. The $704 is taken off your gross income, so you will have a lower AGI when calculating regular income taxes..
@SteveSoCal wrote:
The original question asked is about self-employment tax, and it seems like there may be some confusion about what that even is. It's not income tax, so no deductions would apply to it.
You pay the SE tax you owe, and for that, you receive a deduction on your 1040. If you don't make enough $$ to have that deduction be relevant, so be it.
From the IRS website:
"Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general, anytime the wording "self-employment tax" is used, it only refers to Social Security and Medicare taxes and not any other tax (like income tax)."
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