Self-Study
Reducing a Business Owner Client's Exposure to Social Security and Self-Employment Taxes
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Monday, May 1, 2023 – Tuesday, April 30, 2024
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2.00CREDITSTaxes
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. It covers strategies that can be used to reduce clients' exposure to the self-employment tax and Social Security tax.
Objectives
- Determine when avoiding earned income/SE income works favorably for the client
- Understand how hiring a spouse and/or child helps reduce self-employment tax
- Differentiate between income treated as self- employment income and income that is not self-employment income
Highlights
- 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 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 child helps reduce self-employment tax
- Differentiating between income treated as self- employment income and income that is not self-employment income