I’ve been filling out the tax forms, and I worked as an independent contractor last year AND had a different job using a W2. I’ve figured out the taxes for the W2 job, and I think I’ve completed the taxes for the independent contractor job (using 1099-MISC and Schedule C). I’m just wondering it there are any deductions that can be applied to the self-employment tax. I’ve already made my deductions on business related expenses (car expenses, supplies, unpaid debt owed to me), but I was wondering if there’s anything else. I am eligible for the Lifetime Learning Credit, but from what I understand, that’s only deductible for the W-2 job.

Is there a way to claim dependents or exemptions from self-employment tax? I have two exemptions. If not, why is it that self-employment tax doesn’t use exemptions?

I know it’s a lot of questions…just trying to figure things out. Thanks!
The instructions provided by the IRS says to deduct any unpaid debts owed to you. Once they are paid, you add it to your income in the year they are paid IF paid.

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.