HB24 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Paul Beckman

Republican

Session

First Special Session 2015

Title

Income tax, deductions for federal FICA taxes, tax on wages removed, self-employment taxes reduced, Sec. 40-18-15 am'd.

Description

In determining the amount of income that is subject to tax under current law, taxpayers are allowed to deduct, from income, the full amount of Federal Insurance Contribution Act (FICA) taxes withheld from wages and the full amount of taxes paid on self-employment income. FICA and self-employment taxes are composed of two components, Medicare taxes and Social Security taxes.

This bill would amend Section 40-18-15 to remove the deduction for FICA taxes paid and to limit the amount of self-employment taxes that can be claimed as a deduction against income.

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Subjects

Taxation