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Accurate Calculation With Self Employed Tax Calculator
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Posted On :
Nov-17-2011
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Article Word Count :
428
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The self employed acts both an employer and employee so he must pay the tax for himself, whether this is paid on the company payroll or not. Self-employed tax is an essential tool that tracks the income of the self employed person.
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If you are an individual who is self-employed, you are liable to go ahead with a number of deductions, reliefs and allowances that you can have in order to reduce the tax bill. Self-employed tax calculation is not a tedious task if you calculate it with some very advanced and highly accurate self-employed tax calculators. In financial terms, a self employment tax is incurred on the top of the income tax that you pay as a self employed individual or married couple. The self employment tax comes in the place of the share of social security and Medicare taxes that an employer normally pays on behalf of an employee.
Usually, the self employed acts both an employer and employee so he must pay the tax for himself, whether this is paid on the company payroll or not. Self-employed tax is an essential tool that tracks the income of the self employed person. This is commonly known as an additional layer of tax levied on the top of the income tax itself. When you are calculating the self employment tax, legally you can get exemption for all your valid business expenses. You can therefore take care of wide range of expenses and write them off. These things may vary from mileage to expenses incurred in buying several objects however, you should have receipts for all these expenses incurred.
All the self employed persons are required to make the self employment tax declaration in advance of three months. It will help them to keep themselves parallel to the back or federal regulations. To place their tax calculation in the right order and at the right time, they must not wait till the end of year. They are recommended to use a recognized self-employed tax calculator to calculate and pay the self employment tax.
A person or an individual is liable to pay self-employment tax and file Schedule if his net earnings from self-employment were $400 or more or he is the church employee with an income of $108.28 or more If you are self-employed and enjoys the status of sole proprietor or independent contractor, you generally use Schedule C or C-EZ to come out or evaluate with the net earnings you get from self-employment. You can deduct half of your self-employment tax in the strict accordance with the adjusted gross income. This calculation should be done with an accurate self-employed tax calculator and you must know that this deduction only affects your income tax and has no affect on your net earnings from self-employment.
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Article Source :
http://www.articleseen.com/Article_Accurate Calculation With Self Employed Tax Calculator_105800.aspx
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Author Resource :
Helix Management is a leading name in providing tax efficient payment services like Contractor Tax and Self Employed Tax Calculator, disguised remuneration etc.
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Keywords :
Contractor Tax, Self Employed Tax Calculator, Contractor Tax Calculator,
Category :
Finance
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Taxes
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