Is social security and income tax both computed from the same "taxable income" figure, if you're in a freelance arrangement?
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Read my post here Especially the bit on the Social Security Trap.Originally posted by candyflipper View Post
In short it works like this.
Social Security is assessed on your total income. This is deducted first. Tax is then calculated on the balance. i.e. SS is a deductible expense for tax computation.I am not an expert, just someone who has experienced things first hand. If you need expert advice then seek out a qualified expert. My opinions are just that, my opinions. I could be wrong, and laws change, so trust nothing I say
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