Nobody pays double SS tax. Stop it already. Look at form 1040 line 12 business income or loss schedule C line 27 one half of self employment tax (deduct) Example: Business income 100K Double tax - 15K Total business income 85K Form 1040 line 12 income 85K line 27 - 7.5K AGI 77.5K (this is NOT your taxable income) Second Example: Business income 100K Double tax - 8K (underpaid by 7K) Total business income 92K Form 1040 line 12 income 92K line 27 - 4K AGI 88K (this is NOT your taxable income) Taxable income is taxed based on your tax bracket after applying allowable deductions and credits. (line 43 on 1040) Here is real example AGI 119K taxable income 78K Stop with double social security tax. Double taxation is only when you own your business through Corporation. (And only when it is regular C corp., S corp taxed as self employed). corporation is taxed than, dividends taxed.