Sec. 1501. Modifications of deduction for Social Security taxes in computing net earnings from self-employment
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(12)of section 1402(a) is amended to read as follows: in lieu of the deduction allowable under section 164(f) (relating to deduction for one-half of self-employment taxes), there shall be allowed as a deduction an amount equal to the sum of— 7.1064 percent of so much of the individual’s net earnings from self-employment for the taxable year (determined without regard to this paragraph) as does not exceed an amount equal to the product of 1.0765 and the excess (if any) of— the contribution and benefit base (as determined under section 230 of the Social Security Act) in effect for the calendar year in which the taxable year begins, over the wages (within the meaning of subsection (b)(1)) paid to the individual during such taxable year, plus 1.4293 percent of the excess (if any) of the individual’s net earnings from self-employment for the taxable year (determined without regard to this paragraph) over the amount of such net earnings taken into account under subparagraph (A); . Paragraph
(11)of section 211(a) of the Social Security Act is amended to read as follows: in lieu of the deduction allowable under section 164(f) of the Internal Revenue Code of 1986 (relating to deduction for one-half of self-employment taxes), there shall be allowed as a deduction an amount equal to the sum of— 7.1064 percent of so much of the individual's net-earnings from self-employment for the taxable year (determined without regard to this paragraph) as does not exceed an amount equal to the product of 1.0765 and the excess (if any) of— the contribution and benefit base (as determined under section 230) in effect for the calendar year in which the taxable year begins, the wages (within the meaning of section 1402(b)(1) of the Internal Revenue Code of 1986) paid to the individual during such taxable year, plus 1.4293 percent of the excess (if any) of such net earnings over the amount of such net earnings taken into account under subparagraph (A); . The amendments made by this section shall apply to taxable years beginning after December 31, 2014.