Many business owner clients wish to minimize their Social Security and self-employment tax liabilities. This course provides tax practitioners with the background to understand what kinds of income constitute self-employment income and earned income and strategies that can be used to reduce their clients' exposure to the Self-Employment tax.
Tax practitioners who advise clients with regard to their self-employment tax liability.
- Identify what kinds of income are and are not subject to Social Security and self-employment tax
- Understand how the self-employment tax applies to general partners, limited partners, and LLC members
- Determine how using a pass-through entity can reduce or eliminate employment tax for the principals and family members
- Understand how the 0.9% tax and the 3.8% tax apply to self-employment income and earned income
- 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 taken 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 children helps reduce self-employment tax
- Differentiating between income treated as self-employment income and income that is not self-employment income
Basic knowledge of individual income tax.