A sad state of affairs . . .

[tballump]

Originally Posted by Reffing Rev.

So I'm guessing by some of the previous posts that not very many of you pay SE taxes on your "independant contractor" income.

Are they suppose to?

[DonInKansas]

Originally Posted by tballump

Are they suppose to?

Uh....yeah. It's income. It's like any self-owned business.

I forgot to state Uncle Sam gets his cut of my game checks as well.

[tballump]

Originally Posted by DonInKansas

Uh....yeah. It's income. It's like any self-owned business.

I forgot to state Uncle Sam gets his cut of my game checks as well.

Can this 15.3% be written off or reduced in any way or is it just Federal, State, and Local that can be written off or reduced by expenses.

[Rich]

Originally Posted by tballump

Can this 15.3% be written off or reduced in any way or is it just Federal, State, and Local that can be written off or reduced by expenses.

You only pay self-employment taxes above a threshold - net income over $400. All deductible expenses are removed before you calculate the SE tax.

[bob jenkins]

Originally Posted by RichMSN

You only pay self-employment taxes above a threshold - net income over $400. All deductible expenses are removed before you calculate the SE tax.

Plus, 1/2 of that SE tax is a deduction itself -- whether or not you itemize.

And, the $400 limit Rich mentions is *total* SE income -- not per payer.

[Rich]

Originally Posted by bob jenkins

Plus, 1/2 of that SE tax is a deduction itself -- whether or not you itemize.

And, the $400 limit Rich mentions is *total* SE income -- not per payer.

It's hard for some to believe, but once all proper deductions are removed, it's pretty hard to make a lot of money doing this. I do pay SE taxes yearly, but the number isn't going to make anyone gasp.

Having lost a fair amount of weight this season, I had to buy all new baseball clothes and will have to buy all new basketball and football clothes. All deductible, and it's possible that for the first time EVER, I'll lose money this season.

[Mark T. DeNucci, Sr.]

Originally Posted by RichMSN

It's hard for some to believe, but once all proper deductions are removed, it's pretty hard to make a lot of money doing this. I do pay SE taxes yearly, but the number isn't going to make anyone gasp.

Having lost a fair amount of weight this season, I had to buy all new baseball clothes and will have to buy all new basketball and football clothes. All deductible, and it's possible that for the first time EVER, I'll lose money this season.

Rich:

If you are taking all of the legal deductions that you are alllowed and you are still having a taxable profit on your Schedule C, then you have to be doing something wrong. I can not remember the last time that I had a taxable profit on my Schedule C.

MTD, Sr.