Deductible Portion of Self-Employment Tax
Self-employed taxpayers can subtract a deductible portion of their self-employment tax from their income. As a result of the reduction in the self-employment tax rate for 2011, there is a slight difference from past years in the calculation for the adjustment to income. Self-Employment Tax is covered in the lesson Other Taxes.
If you establish during the interview that the taxpayers have self-employment income, calculate the self-employment tax using Form 1040 (Schedule SE), Self-Employment Tax. This is covered in Lesson 27, Other Taxes.
To review information related to the software, go to the Volunteer Resource Guide (Tab 3).