All of the Following Statements Regarding Self-Employment Income/tax Are True

question 66

Multiple Choice

All of the following statements regarding self-employment income/tax are true except

• A)the self-employment tax is imposed on net earnings from self-employment when self-employment income is over $400.
• B)self-employment tax is computed separately for married individuals filing joint returns.
• C)independent contractors are subject to self-employment tax on the amount of net earnings from the self-employment activity.
• D)employees who have a business in addition to their regular employment are not subject to the self-employment tax since FICA is withheld on their wages.

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Definitions:

Antidepressant Medication

Drugs prescribed to alleviate symptoms of depression by adjusting chemical imbalances in the brain.

Situational Low Self-Esteem

A temporary drop in confidence and self-worth tied to specific circumstances or events, contrasted with chronic low self-esteem.

Ineffective Coping

A response mechanism to stress or trauma that fails to alleviate distress or resolve the underlying problem.

Insomnia

A sleep disorder where an individual has difficulty falling asleep, staying asleep, or experiences non-restorative sleep.