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Originally Posted by Liebling:-)))
Oh I got it... I know some self-employers or business owners have to pay taxes instead of get tax refund... They have to do something add like donate, etc... spendings, .... to reduce tax pay to get some tax refund. I understand now where you come from.
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We deduct business expenses from the gross income amount. We also deduct charitable donations, yes. After all deductions and adjustments we end up owing over $2,000 each year for federal income tax, and a couple hundred for state income tax.
Self-employed people pay double tax because they are paying both the employer and employee portions of Social Security and Medicare.