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This year my S Corp made $30,000.

Before the end of the year, I started a personel 401k and maxed it out with profit sharing.

As I was working on my return over the weekend, I characterized the rest of the positive cash flow as income from work. Of course this makes me paying in mucho Social Security.

My father told me the amount I characterize as PROFIT SHARING is NOT subject to Social Security. Is this true? Is their a max one can claim? Where do you report it?

Larry
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