Employees with Self-Employment Income Who Also Have W-2 Income May

question 53

True/False

Employees with self-employment income who also have W-2 income may be able to avoid making estimated tax payments by filing a new Form W-4 and increasing the amount of their withholding.

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Definitions:

Adult Child

An individual over the age of majority, which varies by country, but often refers to those over 18 or 21 years old.

Retirement Savings Contributions Credit

A tax credit available to lower-income individuals who contribute to retirement accounts.

AGI

Adjusted Gross Income; income calculation used to determine how much of your income is taxable after certain adjustments are made.

Credit for the Elderly

A tax credit available for individuals aged 65 or older, or those under 65 who are retired on permanent and total disability and who meet other qualifications.