Are you subject to the self-employment tax?
The answer is “no” if your activity doesn’t rise to the level of a trade or business. And if it doesn’t, you could put a lot more money in your pocket. That’s because you won’t have to pay the nasty self-employment tax.
If you want to learn how the IRS and the courts determine whether your activity is a trade or business (or not!), don’t miss my new article titled Tax Tips: Mom Avoids Self-Employment Tax When She Gets Paid for Painting CPA’s Office.
Three ways our fact-filled article can help you:
- You’ll learn how the Batok case affects you. A gentleman by the name of Batok claimed that he did not have to pay self-employment tax on the money he earned installing office windows. And the courts agreed with him. Why? You’ll find out when you read the full article.
- We’ll explain the impact of the Kling case. Court rulings contain helpful guidelines for answering the question of whether or not you have an activity subject to the self-employment tax. The Kling case is important and we’ll tell you why when you read the full article.
- We’ll tell you two mistakes to avoid. Taking certain deductions can mess things up big time. We’ll explain when you read the full article.