is the employer part of social security and medicare a deductible business expense

Forum|Forum|2 years ago
October 13, 2023
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is the employer part of social security and medicare a deductible business expense? If so, where do I report it?

TurboTax Home & Biz Windows

VolvoGirl

Employee

Is this for employees you pay on a W2?

For you own Self Employment tax......

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare (FICA). So you get social security credit for it when you retire.

The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23. The SE tax is in addition to your regular income tax on the net profit.

You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. It will be on Schedule 1 line 14 which goes to 1040 line 10a. And subtract the QBI Adjustment on 1040 line 13.

Cindy62707Author

I found it under the Taxes and Licenses section

DoninGA

Employee

@Cindy62707 wrote:

I found it under the Taxes and Licenses section

If you are referring to your Self-Employment taxes (not one of your employees) you do not enter that on Schedule C Line 23.

As stated in the Schedule C Instructions for Line 23 on page 9 - https://www.irs.gov/pub/irs-pdf/i1040sc.pdf#page=9

Do not deduct the following.
• Federal income taxes, including your self-employment tax. However, you can deduct one-half of your self-employment tax on Schedule 1 (Form 1040), line 15

@VolvoGirl gave you the correct answer above on this thread.