Is there any way to avoid or lower $3000+ in self employment tax for 1099-misc?
These are useful and collceted by Anne!
Q&A: Is there any way to avoid or lower 00+ in self employment tax for 1099-misc?
I received over k in some design work I did and received 1099-misc. I put the numbers into turbo tax and it assessed 00+ in self employment tax. I do not have a company of my own legally. Is there any way to minimize or avoid paying this? Any help would be appreciated.
The following is the answer:
Answer by bostonianinmo
Just be sure that you accounted for all of your business expenses involved in the business. Those are the only things that will reduce the self-employment taxes.
Answer by hrblockchristinew
You can claim any expenses that yo have record of for the income. If you worked from your home and had an office that was used exclusively and regularly for business,you can get a office in home deduction. The link below will help.
http://www.irs.gov/publications/p535/ch01.html#d0e737
Christine EA Master Tax Advisor
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.
http://www.hrblock.com/tax_professionals/christine_wilkins.html
Answer by Penny Saved
There are only 3 ways I’ve ever been able to lower my self-employment taxes:
1) have a kid (you would have needed to do that in 2008 so you’re out of luck)
2) take every single deduction you can from your business. did you buy a design book? a new laptop that you use solely for business?
3) contribute to an IRA — there’s still time to do this!! 
edit: Not sure why this answer got a thumbs down? In any case, these are the three things that have lowered my overall taxes and I am self-employed making about the same amount. So I’m guessing my suggestions are actually worth considering.
Seriously. Thumbs down? Weird.
Answer by Sharon T
Not unless you have valid deductions, such as mileage or special equipment you used.
You are in business whether you planned it that way or not.
Answer by Max Hoopla
That sounds about right. If you worked for wages, you would have social security and medicare taxes withheld and you would never see them. As a self-employed person, you have to write a check for the employer and employee parts of the tax. The only way to lower it is to have more expenses.
Answer by Doctor Deth
did you have legitimate business expenses related to earning that money?
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