Self-employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self-employment taxes paid.

Question

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Self-employed taxpayers must pay both the employee and employer portions of Social Security and Medicare taxes, but they can only claim a deduction for the employer-equivalent portion of these taxes on their income tax return. There is no option to claim a credit for these taxes.

Self-Employed Taxpayers Can Choose Between Claiming a Deduction or a Credit