New Search

Overview

2.0 Credits

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.

Objectives

  • 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

Major Topics

  • 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

Designed For

Tax practitioners who advise clients with regard to their self-employment tax liability

Prerequisite

Basic knowledge of individual income tax

You will receive an email from Surgent CPE with instructions to view this on-demand webcast.