Condemned as “Not a Real Person” By Rush Limbaugh, a Small Businesswoman Speaks Out

[WCGreen]

64. As an accountant with payroll accounts I can tell you self-employed people do get the deduction...

Here is how it works
Self-Employed people have to pay Social Security on the Form SE...

http://www.irs.gov/pub/irs-pdf/f1040sse.pdf

Here is a link to the Form.

Look at line 5. In normal times, that line would be 15.3%, which is 7.65 x 2.

In the form for 2011, the latest tax year, that line is 13.3%

The 15.3% is a combination of 6.2% for the self-employed person’s contribution, 6.2% which is the company's matching, 1.45% for Medicare contribution from the employee and 1.45% for the match from the company.

The person who is Self-Employed is allowed to deduct the 7.65%, 6.2% plus 1.45% that the company contributes from his gross income.

Any year that the reduction in SS contribution from the stimulus is 13.3% which is 4.2% from the employee, 6.2% matching, The Medicare contributions remain the same