For purposes of the self-employed health insurance deduction, California conforms to the federal deduction for self-employed health insurance premiums, including the amount deductible for self-employed taxpayers
who are allowed the IRC Sec.
36B premium tax credit that self-employed taxpayers
may also qualify for.
Some clients even put themselves on a payroll to take advantage of tax withholding systems, even though the IRS does not recognize self-employed taxpayers
Steber highlights some of the top deductions that self-employed taxpayers
should be aware of and consider each quarter:
often forget to report half of their self-employment tax on the form (or fill in the wrong number).
WITH recent research showing that HMRC received more in fines from taxpayers making errors on their tax-returns rather than fines from late entries, it is important that local self-employed taxpayers
are thorough in the completion with their tax returns to avoid stinging fines.
instead pay their own payroll taxes as "self-employment tax," which is levied against self-employment income.
THE January 31 tax deadline for online self-assessment looms large, and self-employed taxpayers
could face fines of more than pounds 442 million for late or wrongly completed self-assessment forms.
are permitted a deduction in computing their adjusted gross income for the cost of obtaining health insurance for themselves, their spouses and children who have not attained the age of 27 by the end of the taxable year.
Currently, the tax code allows a deduction for home office expenses for self-employed taxpayers
and employees who must use their home for business purposes at their employer's request.
There also are about 8,000 self-employed taxpayers
who pay varying amounts of tax, depending on their income.
In further news, the government aims to combat tax evasion by companies and self-employed taxpayers
and subsequently increase its revenues by applying a new action plan, Stavrakis said.