Do I pay a SE tax on the total amt rec'd?
by Ann Fairchild
(Myrtle Beach, SC)
The SE tax that we will be required to pay, will that be like 15% of the total amount rec'd for housing regardless of the monies spent on housing?
You have to report the lesser of the following amounts on your SE schedule:
- The amount actually spent on eligible housing expenses.
- The fair market rental value plus furnishings and utilities.
- The amount officially designated in advance as housing allowance.
You will pay 15% on that amount.