Question

What percentage self employment taxes can the self employed deduct as a deduction for AGI? WHY?

What percentage self employment taxes can the self employed deduct as a deduction for AGI? WHY?
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Answer #1

A person can deduct between 50 percent to approxi8 57 percent of the self-employment tax payment. The precise amount depends on how much self-employment income a person earn.

Reason : self-employment taxes exist solely to fund the social security and medicare programs. Employees pay similar taxes with employer withholding, and employers must make additional tax contributions on behalf of each employee. The self-employed are required to pay all of these taxes themselves so to reduce the burden on the self-employed the deduction is allowed.

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