Asked by Denise White on Apr 28, 2024
Verified
What is the amount of self-employment tax that self-employed individuals must pay and what is the proper treatment on their tax return?
Self-Employment Tax
The tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves.
- Comprehend the boundaries and requirements for tax deductions specific to self-employed individuals, covering aspects like health insurance and self-employment tax.
Verified Answer
AF
Ashlee FendallApr 29, 2024
Final Answer :
Self-employed individuals normally pay self-employment tax equal to 15.3% of their net earnings from self-employment.Self-employed persons are allowed a for AGI deduction equal to one-half of the self-employment tax imposed,which would be 7.65% of the net earnings from self-employment.
Learning Objectives
- Comprehend the boundaries and requirements for tax deductions specific to self-employed individuals, covering aspects like health insurance and self-employment tax.
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