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.
1 If you are self-employed you generally have to pay self-employment tax as well as income tax. 2  Self-employment tax is a Social Security and Medicare tax primarily for individuals who work for themselves.3  It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. You figure self-employment tax using a Form 1040 Schedule SE. 2  Also, you can deduct an employer's equivalent portion of your self-employment tax in figuring your adjusted gross income. 3  In prior years, the deduction was equal to one-half of self-employment tax.