What are the different types of deductions of self -government tax?
Deduction of self -government tax can be beneficial for self -employed individuals and home owners in several ways. First, half of the detained social security and the tax medicine can be deducted from the total gross income of the individual. Secondly, individuals can use deductions of self -government tax to deduct general business expenses, such as home office costs, stocks and health insurance. For taxpayers receiving income from employment and wages, income from wages is first taxed for social security and medicare. In 2011, the social security tax rate was 13.3%, with 2.9% for Medicare and 10.4% for social security. The 2011 self -government deductions were eligible for half of this value, ie 6.65% or total gross Incoja. This deduction is only influenced by income tax and earnings from independent employment and the tax on self -government is not affected. The gainful wages are not entitled to this deduction.
Other deductions of self -government tax are general business expenses, such as supplies or furniture for home office, contractual work or mileage. Discharges of home office can sometimes be complicated and require careful documentation, including maps with the right measurements, in case of audit. The percentage of the space of the home office in the total building will be a percentage that the individual can deduct from public services, real estate tax or mortgage repayments.
The cost of using the phone and the Internet can also be valid employment tax deductions, but only expenses specially for business can be deducted. For example, if a home business represents 30% of the Internet use, only 30% of the total Internet account can be deducted as a business cost. Careful records of records and incomes can help determine the commercial costs more clearly.
in some cases will be deducts taxes of self -sufficientYou also include health insurance costs. If the self -employed individual pays for his own health insurance and is not eligible to join the spouse's insurance plan, the costs of health insurance can be deducted. In addition, if the same individual also pays for the health insurance of the spouse or child, these costs can also be deducted. This deduction is classified as personal expenditures rather than business expenditures, but is still available to self -employed.