Prior to Nov,1, 2003 the per diem rate for meals was 65% of $40 per day.After Nov,1, 2003 the rate increased to 70% of $41 per day.The deductible portion of food or beverage expenses gradually increases for individuals during, or incident to, the period of duty away from home and subject to the hours of service limitations of the Department of Transportation (Â§ 274(n)(3)).fter Nov,1, 2003 the rate increased to 70% of $41 per day. The deductible portion of food or beverage expenses gradually increases for individuals during, or incident to, the period of duty away from home and subject to the hours of service limitations of the Department of Transportation (Â§ 274(n)(3)).
You pay your self-employment tax when you pay the rest of your taxes. Self-employment tax is reported on your Form 1040. You can use Schedule C to figure out your net earnings if you are a sole proprietorship or LLC, or you can use your business tax return to figure your net earnings if you are a S-Corp.
Self-Employment Tax Franchise Tax Board Announcement March 2, 2012 â FTB |Tax Practitioner Liaison | Taxpayers' Rights Advocate Office The federal 2010 Tax Relief Act increased the amount of self-employment tax that may be deducted in computing federal adjusted gross income. California has not conformed to this change. For state income tax purposes, taxpayers may only deduct 50 percent (50%) of the self-employment tax paid in computing state adjusted gross income. The majority of self-employed taxpayers have not yet filed their 2011 tax return.