This is for business deductions..gas, electronics, etc. I prefer not to save all my receipts since it can become a mess.

I have done a lot of research on self employment taxes, and have the following information from ehow.com: Instructions
STEP 1: Figure out your net income from self-employment. Net income is typically your total business receipts minus your total business deductions. STEP 2: Multiply your net income from self-employment by 0.9235 (or 92.35 percent). STEP 3: Multiply the amount of your net earnings that is ,200 or less by 0.153 Add your two answers together. This is your self-employment tax. STEP 4: Report your self-employment tax on Schedule SE of the 1040. Tips & Warnings
You can deduct half of your self-employment tax in determining your adjusted gross income. Do this in the Adjustments section of the 1040.

My question is WHERE do I deduct the 1/2 of the self employment tax?

I will be working 40 hours a week at 8$ an hour. How can I figure out how much tax to take out of each pay check?

I have 4 exemptions for kids, plus myself
husband can only take an exemption for himself

In my name only, I have mortgage and property tax deductions, and some business deductions

I owe some self-employment tax, but also paid taxes the first 4 months as an employee

My husband has no other deductions or credits and did not pay any taxes because his income was so very small after child support and other taxes (state, local, soc sec, medicare)

He owes back child support. My gross income was a little more than twice his.

We have to file jointly to get the EIC credit for my children.

We don’t live in a community property state.
How will my deductions, exemptions, etc. affect the way the refund is apportioned using the Injured Spouse Form?
I guess I wasn’t clear when I spoke of his income. No federal taxes were deducted from his checks because his income is so small.

After the support, state, local, soc. sec. and medicare taxes were taken out, his entire take home pay for the year was less than two of my house payments.

His gross income was about half mine, but most of it did not come to our household.I know that his support is not deductible. I am frustrated that it will be counted as income for our household, because it is not.

I am concerned that they will somehow give him part of the EIC for my children because we are married. He really isn’t supporting them at this point. His money is going to his children.

The bulk of our income, and the money that pays our bills, is from survivor’s benefits because my first husband died.

Thank you so much for answering my question with information I can use rather than making personal attacks and ridiculing us as has happened at a business forum where I asked for help.

Last year (2007) I did some freelance video work and earned enough that I had to file as a small business with Turbo Tax Small Business. This year I only had a full time salaried job and did not work any freelance. Do I have to keep filing my small business records and say I earned {content} for 2008? The small business is a sole proprietorship and I took some business deductions if that matters.

I am thinking about buying my first home. I have two years been self-employed (contract labor not business) and have tax returns to prove income. However, I am slightly confused at what the lender will be looking at. I was told that it is the adjusted gross income, but someone also told me the taxable income. I think the latter is wrong because it includes standard deductions, not business deductions, therefore I still brought that home. Can someone help me please?

I am self employed and because of low income I will be getting the earned income credit.
My situation is such that if I DON’T use every possible deduction (such as office supplies for home office, cell phone use, etc.) I actually will get MORE back. Usually people want every possible deduction but I would be better off using less misc. business deductions (stuff the IRS tries to throw out anyway when its to their advantage).
Is it legally my option to use what business deductions I choose?

I am in the consulting business and have one contract already signed for 00 and anticipate another coming in at .000 at the end of the month. I don’t have a tax guy yet so just trying to get an idea. Don’t have alot of business deductions yet because I am just starting. Help!