The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Self employment tax||Date: 6/23/2006 4:00 PM|
|Author: ptheland||Number: 87540 of 121803|
Do I have it backwards?
No. You've got it right.
But if she's an employee, the FICA tax is due on the gross wages, before expenses.
If she's self-employed (and I don't think she is), the FICA taxes are due on the NET income from self employment. And we're talking about expenses that would reduce the net income to something close to zero. So there would be virtually no FICA taxes due.
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