Difference: holiday and vacation leave?
#31
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I've just started as a self-employed IT contractor, primarily working for my old employer in the UK, remotely. My wife's pay covers all the bills and probably most of the food, so any money I bring in will be a bonus. I did the same in the UK for a year, so am used to no pay for holidays etc.
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#32
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But you can then claim 50% of that against your Federal taxes, can't you?
I've just started as a self-employed IT contractor, primarily working for my old employer in the UK, remotely. My wife's pay covers all the bills and probably most of the food, so any money I bring in will be a bonus. I did the same in the UK for a year, so am used to no pay for holidays etc.
I've just started as a self-employed IT contractor, primarily working for my old employer in the UK, remotely. My wife's pay covers all the bills and probably most of the food, so any money I bring in will be a bonus. I did the same in the UK for a year, so am used to no pay for holidays etc.
Some examples that may possibly be deductible are part of utilities, part of house payment or rent, travel to and from work, supplies, capital equipment (usually 100% immediate deduction), vacation trips if associated with a business or conference, health care costs and other benefits if set up with correct type company and follows regulations (LLC or S Corp), possible depreciation of part of house if owned, etc. and all of that reduces the amount of self employment tax owed if below maximum.
Last edited by Michael; Jan 11th 2012 at 3:48 am.
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#33
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From the IRS website:
Self-Employment Tax Deduction
You can deduct half of your self-employment tax in figuring your adjusted gross income. This deduction only affects your income tax. It does not affect either your net earnings from self-employment or your self-employment tax.
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As I read it, you can deduct 50% of the Self-Employment Tax amount from your gross income, prior to calculating federal income tax.
Self-Employment Tax Deduction
You can deduct half of your self-employment tax in figuring your adjusted gross income. This deduction only affects your income tax. It does not affect either your net earnings from self-employment or your self-employment tax.
![Confused](https://britishexpats.com/forum/images/smilies/confused.gif)
As I read it, you can deduct 50% of the Self-Employment Tax amount from your gross income, prior to calculating federal income tax.
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