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Old 01-14-2006, 10:33 AM
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jmjj215 jmjj215 is offline
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Default Re: Reducing the Self-employment tax

Quote:
Well, as a hint, there is no FICA obligation on commissions.
That's very interesting. I'll have to look into that.

Right now I'm paid directly by my customers and for all of 05 operated as a sole-proprietorship. I'm guessing the commission thing won't work because sole-proprietors have to pass through pretty much everything.

I don't pay taxes quarterly, but I did increase my withholdings from my "normal" job, which should have covered quarterlies (I hope).

I'm not too keen on getting an accountant. I've studied plenty of accounting and tax and feel comfortable doing the filing myself. I try and avoid all expenses, including deductible ones, unless I really need them (unless the deduction is depreciation, then I'm all over that).
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