In December 2010, President Obama signed the Tax Relief Act, which will reduce withholding for employees in an attempt to boost taxpayer income, and by extension, consumer spending. However, this bill carries another benefit for those people who are self-employed: Self-Employment taxes (Social Security and Medicare) have been lowered by 2%. This windfall for self-employed Americans will only last one year, so it’s important to be aware of the specifics in order to take advantage of the benefits.
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