What is allowable for self employment tax deductions?

Answer by  Taxmatters (169)

Self employment tax is computed on the profit of your business. Approximately 15+% on sales, minus expenses. All allowable deductions reduce the income that SE tax is based on. .

Answer by  nkhill (73)

You can deduct business expenses that are incurred while earning self employment income. These must be ordinary and necessary expenses in order to carry on your business function. There must be a direct relation between the expense and the earning of the self employment income. Expenses that may have a personal element must be allocated between business and personal use.

Answer by  mayi (212)

for self employement tax reductions you need proper documentation of why and where from you are exempted for tax deductions depending on the money you made and the amoun.