Getting the most of this course
Section 1: Definitions
Basic definitions commonly used in tax planning
Section 2: Tax Law Changes
Discussion of some of the 2018 tax law changes
- Tax law changes excel template
- Personal Standard Deduction
- Tax Rate Changes – Individual
- Tax Rates – Corporation
- Moving expenses
- Medical expenses
- Mortgage interest
- State taxes
- Casualty loss
- Miscellaneous itemized deduction
- Child tax credit
- Opportunity Zones
- Employee credit for paid family and medical leave
- Tax Law Change Quiz
Section 3: Qualified Business Income Deduction
QBI- new deduction for 2018
Section 4: Tax Planning
Section 5: Tax issues specific to married entrepreneurs
Section 6: Multi year tax planning issues
Self employment tax
When you receive a paycheck, you notice that they are variety of taxes taken, 2 of which are social security and medicare tax. You pay half of it and your employer pays the other half. This is money you can draw on when you retire.
Self employment tax is the social security and medicare tax for someone who works for themself. This entrepreneur will often file a schedule c, or partnership return if more than one person.
The self employment tax is added to the tax calculated for all income. Half of it is deducted from gross income. In other words, the entrepreneur gets to deduct the employer portion of the self employment tax.
The social security tax is 12.4% of your net income, while the medicare tax is 2.9%. This makes for a total tax of 15.3%.