For Taxpayers Who Receive Both Salary as an Employee and Self-Employment

question 157

Multiple Choice

For taxpayers who receive both salary as an employee and self-employment income as an independent contractor in the same year, which of the following statements regarding FICA and self-employment taxes is most accurate?

• A)The Social Security limit applies to the salary but not to the self-employment income.
• B)The Social Security limit applies to the self-employment income but not to the salary.
• C)Salary is first applied against the Social Security limit and then self-employment income is applied against the Social Security limit.
• D)Self-employment income is first applied against the Social Security limit and then salary is applied against the Social Security limit.

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Definitions:

Self-Esteem

The subjective evaluation or appraisal of one's own worth, value, or significance.

Negative Thoughts

Involves patterns of thinking that are pessimistic, self-critical, or defeatist, and can affect one's mood and mental health.

Cognitive-Behavioral Therapy

A form of psychotherapy that aims to improve mental health by identifying and challenging negative thought patterns and behaviors and replacing them with healthier ones.

Major Depressive Disorder

A mental health disorder characterized by a persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.