Objective
- Determine when avoiding earned income/SE income works favorably for the client
- Understand how hiring a spouse and/or child helps reduce self-employment tax
- Differentiate between income treated as self- employment income and income that is not self-employment income
Highlights
- Section 1402(a)(1) exclusions from the definition of self-employment income
- Application of the SE tax to members of limited liability companies
- Taking a self-employed owner's health insurance deductions against self-employment tax
- How using the S corporation and the MMLLC treated as a partnership can help reduce an individual's exposure to self-employment tax
- How hiring a spouse and/or child helps reduce self-employment tax
- Differentiating between income treated as self- employment income and income that is not self-employment income
Designed For
Tax practitioners who advise clients with regard to their self-employment tax liabilityPrerequisite
Basic knowledge of individual income taxAdvanced Preparation
None