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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Herc who wrote (3728)	9/9/1999 8:48:00 PM
From: Dan Duchardt	Respond to of 18137

I got out my Schedule SE and it says, "More than $68400, multiply line 4 by 2.9%. Then add $8481.60 to the result." This is because the Medicare tax is not capped the way the SS tax is. This separation of Medicare tax from SS was instituted several years ago. As a self employed person, if you make less than the SS cap you pay a combined 15.3% on all your income. If your income is above the cap you pay 12.4% of your income up to the SS cap, but you pay 2.9% on all of your income. ($8,481.60 is 12.4% of $68,400)

To: Herc who wrote (3728)	9/11/1999 1:11:00 PM
From: Paul Viapiano	Read Replies (1) \| Respond to of 18137

To all, Maybe this has been mentioned before but it is my opinion that if you trade regularly, your trades are entered on Schedule D where you are taxed for capital gains at your regular tax rate. There is no self-employment tax on these gains but you are subject to the $3000 maximum loss write-off (in any one year.) If you decide to be a mark-to-market trader (many trading for a living choose this)you then enter your income from trading on Schedule C, where it IS subject to self-employment tax, but you are able to write off losses with no limit. -------------- Please check with your financial advisor concerning any tax matter or investment idea before acting on advice from any chat room or message thread. Paul