A solo 401(k) plan allows a self-employed taxpayer
to make two different types of contributions--one as an employee and one as an employer.
High-Wealth Individual and High-Income Self-employed Taxpayer
Furthermore, the deduction only applies for months when the self-employed taxpayer
is not eligible to participate in a subsidized health plan maintained by an employer of either the taxpayer or the taxpayer's spouse (Sec.
When a tax return is mailed to the IRS, there are at least eight people that will handle that return," says Maria Jaramillo, a tax specialist with the small business, self-employed taxpayer
communication division of the IRS.
Although that case dealth with a self-employed taxpayer
, in Strasser v.
Under IRC section 280F, computers and peripheral equipment used by a self-employed taxpayer
are subject to the listed property requirements.
However, a self-employed taxpayer
may deduct one-half of this self-employment tax increase for adjusted gross income, This would reduce a taxpayer's federal income tax by up to $322 at the 1991 top rate of 31%.
A self-employed taxpayer
may be able to claim deductions for the business use of his or her home.
The calculator then computes the aftertax present value of the net cash flows for each year and finds the total, aftertax present value of the net cash flows under both the purchase and the lease options, for either an employee or a self-employed taxpayer
For example, the Internal Revenue Manual says a self-employed taxpayer
will be allowed to make minimum credit card and bank loan payments if these unsecured debts are used to pay suppliers and other business expenses.
The issuance also clarifies certain gray areas in the new law affecting personal income tax including the most buzzed about eight percent tax rate election available to certain self-employed taxpayers