4

Jun

Can I apply a tax credit to self-employment tax?

Posted by admin  Published in United States

Emma S asked:


Is an education tax credit (the Lifetime Learning one) good towards self-employment taxes or is the credit only good towards lowering income taxes owed?

Related Articles

2 users responded in this post

Subscribe to this post comment rss or trackback url
mygif
bostonianinmo said in June 7th, 2008 at 7:08 am

Some credits are applied to your income tax liability only. Self employment taxes are added on after the credit is taken. Education credits are an example of one of those.

mygif
Judy said in June 8th, 2008 at 7:14 pm

The only credits that could help with self-employment taxes are the refundable credits. The non-refundable credits, including the Lifetime Learning credit, can only reduce your income taxes to zero, not beyond. Earned Income Credit and Additional Child Tax Credit are refundable credits. Also, this year only, the credit for telephone excise tax.

Leave A Reply

 Username (*required)

 Email Address (*private)

 Website (*optional)

Please Note: Comment moderation maybe active so there is no need to resubmit your comments