Can anyone confrm about tax deduction for social security payments?

 I heard that one overlooked tax deduction is that small businesses can claim back 50% of their social security payments. Does anyone know if this is true?

Thanks!

Julie

This deduction applies to people who are self-employed and benefits them in two ways.  According to Social Security Website, if you are self-employed you reduce your net earnings by half of your total Social Security tax.  If you were employed somewhere else the employer's share of the Social Security tax would not be considered wages to you which is the reason for reducing your earnings.  Also you can deduct half of your Social Security tax on IRS Form 1040.  You can read further about this on the Social Security website. 

Thanks Kelly - that is useful.

Sorry for the delay in responding. I haven't been here for a while but had a question about something else so checked back in and saw your reply. I actually do still need an answer to that question, before tax day :-)

Best, Julie