The Self-Employment Tax Strategy The IRS Hopes You Never Learn!

The Self-Employment Tax Strategy The IRS Hopes You Never LearnnCPA EXPLAINSnMore Types of TaxesnMore Tax Benefitsn1. Taxes are not automatically withheld from your self-employment income.n2. Self-employment income is subject to a HIDDEN 15.3% tax.nSELF-EMPLOYMENT TAXnMedicare TaxesnSocial Security TaxesnPayroll Tax ContributionsnEmployernEmployeenSelf-Employedn6.2%n6.2%n12.4%n1.45%n1.45%n2.9%n7.65%n7.65%n15.3%n2026 Self-Employment Tax Base LimitnIncome Leveln$ Up to $184,500nSelf-Employment Tax Raten15.3%n$184,500nxn15.3%n$28,228n2026 Employer LimitnSelf-Employment TaxnAbove $184,500n2.9%-3.8%nAdditional Taxn2026 Federal Individual Tax BracketnTax Raten10%n12%n22%n24%n32%n35%n37%nSingle Filers, Taxable Incomen$0 to $12,400n$12,401 to $50,400n$50,401 to $105,700n$105,701 to $201,775n$201,776 to $256,225n$256,226 to $640,600n$640,601 or morenSTEP #1nMAXIMIZE YOUR WRITE-OFFSnSELF-EMPLOYED CASH FLOWn$ Incomen$ Expensesn$ Taxesn$0.00n- $0.00n$0.00nSECTION 162 OF THE INTERNAL REVENUE CODEnAllows us to write-off all ordinary and necessary expenses we incur to operate our trade or business.nBUSINESS INSURANCEnTOOLSnSOFTWAREnADVERTISINGnPROFESSIONAL SERVICESnMORE ADVERTISINGnNEW EQUIPMENTnBETTER TALENTnSTEP #2nSETTING UPnSELF-EMPLOYED BENEFIT PLANSnSELF-EMPLOYED RETIREMENT ACCOUNTSnSEP IRAsnMaximum ContributionnOr up to 25% of Compensationn$72,000nSOLO 401(k)snMaximum ContributionnCatch Up (Age 50+)nSuper Catch Up (Age 60-63)n$72,000n$8,000n$11,250nHEALTH SAVINGS ACCOUNTSnCHILD CARE ASSISTANCE PLANSnHIRE YOUR CHILDREN/FAMILY MEMBERSnACCOUNTABLE PLANSnCORPORATE INCOMEnS-CORPORATION INCOMEnNot subject to self-employment taxnC-CORPORATION INCOMEnNot subject to self-employment taxnTHE S-CORP TAX ADVANTAGEnSelf-Employed Incomen$184,500nSelf-Employment Tax (15.3%)n$28,228nS-Corporation Incomen$184,500nSelf-Employment Tax (15.3%)n$0.00nReasonable W-2 Salaryn$75,000nPayroll Taxesn$11,475nTHE C-CORP TAX ADVANTAGEnSelf-Employed Incomen$184,500nSelf-Employment Tax (15.3%)n$28,228nReasonable W-2 Salaryn$75,000nPayroll Taxesn$11,475nmycpacoach.comnTHE #1 CPA SERVICEnSUBSCRIBEnWATCH MORE!nmycpacoach.com