2020seogang
26.02.2020 •
Mathematics
Solve simultaneous equations
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Ответ:
Step-by-step explanation:
Since he is his own boss, he is basically a self employed taxpayer and should be to deduct the employer portion of self employment taxes that he/she pays during the year.
In a case like this, the total self employment taxes are $7,771 x 50% = $7,771 * 0.5 = $3,885.50. This money also now, is corresponding to employer taxes (the other 50% are not deductible since they correspond to employee taxes).
Self employment taxes composes but not limited to Medicare and Social Security taxes (FICA taxes basically).