 But you might say, why would we also get this half of it as a deduction or the deductible part of self-employment taxes, typically half of the self-employment tax? Why would that be? Because they're trying to mirror a situation as if you were an employee of your own small business sole proprietorship. Because if it was a corporation, then you would have withholdings as the employee, but the corporation would also have to pay the payroll taxes on their half of Social Security and Medicare, but they get a deduction as well for doing that. So they actually get a tax benefit of the deduction. So we should get a deduction if you're going to treat me as a sole proprietorship as the employer and the employee of myself for Social Security and Medicare. So but we can't take that deduction on the Schedule C because I needed to calculate the Schedule C to figure out what the net income was in order to calculate the tax in the first place, and that would create a loop reference. And therefore they have to put it over here on the adjustments to income. So it's a bit messy. We'll talk more about that later. Self-employment, SEP, Simple and Qualified Plans. So now these are going to be those retirement kind of plans, situations. So notice that if you're an employee, then you might have the capacity to invest in like an IRA or a 403B type of plan, which which is a great benefit because then it reduces your income because the idea of all these types of plans is that you're going to get a tax benefit, typically when you put the money in, unless it's a Roth or something, but normally you get a tax benefit when you put the money in and you get to defer the tax that's going to be applied until the point in time that you take the money out, say in retirement, for example. So if you're working for somebody else, then they're going to report that by reducing your income by the non-taxable amount, the amount that's been exempt from taxes on the W2. So line one of the W2 will be reduced for the amount that you put in to say a 401K plan or a 403B, for example. Now, if you don't have any capacity to put money into a 401K or 403B, then you often think of an IRA situation, which we'll talk about later. So in an IRA, you can't deduct the amount from your W2 because it wasn't your employer that facilitated the IRA. So therefore they have to put it in this above the line type of deduction in this kind of setting. And then you could have situations where you're self-employed and instead of just sitting with an IRA, you would like to do one or both of two things. I would like to put more money in than I can put in in a typical IRA and I have a sole proprietorship business like a Schedule C, number one. And number two, maybe I want to have a benefit to my employees like a 401K plan or something like that. But those in plans are too complex to manage for me. And therefore I want a kind of more simplified plan. And that's when you might put money into like a SEP, a simple and qualified plans. So these kind of plans are a benefit to people that have once again a Schedule C business, which we might talk about more when we get to the Schedule C stuff. And that would be that I'm self-employed. Therefore I don't have any access to a 401K. The benefit of the 401K plan, if I was employed by someone else, is that the dollar amount you can put in is higher, a lot higher than like an IRA and you might have a matching kind of situation. So if I'm self-employed, how can I increase the amount that I can put in above the limit of an IRA? At least can I do that? Well, then you might be able to get like a SEP, a simple or you can start your own 401K plan, but that's more cumbersome to do, to manage it. And then you also might be able to benefit your employees by allowing them to put money into these types of plans, as opposed to them being restricted by just being able to put an IRA deduction in place. Okay, that's the idea. So line 13, health savings account, the HSA deduction. You may be able to take this deduction if contributions other than employer contributions, rollovers and qualified HSA fundings, distributions from an IRA were made to your HSA for 2022. So we've got the health savings account. So for that, if you've got the health savings account set up, you can dive into that with more detail with the form 8889 line 14, the moving expenses, you can deduct moving expenses if you are a member of the armed forces on active duty and due to military order, you move because of a permanent change of station, you could use tax topic 455 or C form 3903 for more detail line 15 deductible part of self-employment tax. So if you were self-employed and owes self-employment tax, fill in schedule SE to figure the amount of your deduction, the deductible part of your self-employment tax is online 13 of schedule SE. So in other words, if you have a schedule C, typically you have to have the bottom line of the schedule C will be your net income, you're going to use that to calculate not only your income tax, but also your self-employment tax, social security, Medicare, and then half of that generally is the amount that might be an above the line deduction. So line 16 self-employed, simple and qualified plans. If you were self-employed or a partner, you may be able to take this deduction, see publication 560 or if you were a minister publication 517. So if you're self if you're self-employed, sole proprietorship, then if you when you start generating money, if you have the cash flow, then you might be saying, Hey, how can I put money away for retirement and get more of a tax benefit than say simply putting money in to an IRA because that's a fairly low limit. And you might then say 401k plans are more complex. And then you try to compare some of these plans like a sep and a simple and see what might best fit you and your business.