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SECA |
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3121(v), there is no statutory section allowing or requiring a self-employed individual to take deferred compensation into account for SECA purposes before the compensation is taken into income for income tax purposes. Therefore, such expenses can reduce SECA tax payable by that individual and should be taken into account when completing Schedule SE of Form 1040. For employee wages, these taxes are often referred to as FICA (Federal Insurance Contribution Act) taxes; for self-employment income (such as corporate director fees), they are known as SECA (Self-Employment Contributions Act) taxes. |
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