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-   -   Self-employment taxes - do I subtract $400? (https://www.askmehelpdesk.com/showthread.php?t=724649)

  • Dec 27, 2012, 10:02 PM
    todohere
    Self-employment taxes - do I subtract $400?
    If I earned $4000, do I subtract $400 from it considering first $400 is tax-free? I haven't seen it mentioned everywhere, but a couple places did mention it.
  • Dec 27, 2012, 10:09 PM
    AtlantaTaxExpert
    This subtraction is done on Schedule SE where you calculate the self-employment tax.
  • Dec 27, 2012, 10:30 PM
    todohere
    I didn't find any spot on Schedule SE to subtract this $400.
  • Dec 28, 2012, 06:07 AM
    AtlantaTaxExpert
    Look on Line #4 of the Schedule SE
  • Dec 28, 2012, 04:39 PM
    todohere
    It only talks about whether it is less than or greater than $400. It doesn't mention whether I am supposed to subtract $400. For example, if I earned $4000, do I pay tax on .9252*4000? Or on .9252*4000-400?
  • Dec 28, 2012, 05:20 PM
    AtlantaTaxExpert
    The FIRST calculation.

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