jwp (02/08/83)
While it may not help many people, there is a legitimate (i.e. legal) way for
some people to reduce the amount of FICA they are required to pay. It applies
to people who derive income from partnerships, and involves careful attention
to how the partnership income is divided and a rule that says (basically) that
a limited partner may not use income resulting from being a limited partner in
calculating the amount of FICA that should be paid.
Anyone who is involved in a partnership, and who is not aware of this, should
consult a professional tax accountant (preferably a very good one). Many of
them will not be immediately aware of this, but the above information should
be sufficient for them to work out what needs to be done (and whether or not
it applies - or can be made to apply - to you). (Which is, I guess, a way of
saying that if they can't figure it out after a bit of research then they
aren't very good and you should find a new tax person.)
I know of no way to apply it to the income of a sole-proprietor, and I doubt
very seriously there's any (legal) way to apply it to income derived from
being an employee.
John Pierce, Chemistry, UC San Diego
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