Does it make a difference if the taxes (state and fica) are withheld by an employer or if you are self employed? I know you can't deduct federal taxes.
2007-10-15 15:47:08 · 4 answers · asked by J C 3 in Business & Finance ➔ Taxes ➔ United States
ok... I found out that FICA can't be deducted. But the state can right? Doesn't matter if you are self employed or not right?
2007-10-15 15:49:47 · update #1
State taxes paid during the year are deductible. You can compare state income taxes paid against sales tax and take the highest as a deduction on Schedule A. You can also deduct real estate and personal property taxes.
2007-10-15 16:01:55 · answer #1 · answered by dcholsted 2 · 2⤊ 0⤋
Being self-employed doesn't prevent you from deducting taxes you paid to the state or locals if you itemize - it doesn't have to be withheld by an employer.
2007-10-16 03:09:47 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
When you are self-employment you pay 15.3% self employment tax. For this you file schedule SE (Form 1040). You then deduct half of the SE tax on line 27 of form 1040. This does not depend upon if you itemize your expenses or don't itemize your expenses.
2007-10-16 00:31:25 · answer #3 · answered by MukatA 6 · 0⤊ 0⤋
State taxes are deductible, but only if you itemize. You usually have to own your own home and pay interest and real estate taxes to have enough to itemize, if not there is no deduction for state taxes.
2007-10-15 23:21:27 · answer #4 · answered by irongrama 6 · 0⤊ 0⤋