Time to deduct half of your self-employment related taxes
There’s a 15.3 percent Federal Insurance Contributions Act tax on virtually all earnings to pay for Medicare programs and Social Security. And by now, there’s no surprise that employers split this cost with their employees; however, self-employed individuals have to pay the entire amount of money by themselves.
Luckily, the government thought it would be best for self-employment individuals to deduct a part of the amount paid from their income taxes. Basically, if you’re self-employed, you can deduct 50 percent of your self-employment taxes. The best part? You don’t have to itemize in order to claim this money-saving deduction!