Self-Employed Taxpayers Can Choose Between Claiming a Deduction or a Credit

question 115

True/False

Self-employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self-employment taxes paid.

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Definitions:

Real Rate

The interest rate adjusted for inflation, reflecting the true return on an investment over time.

Dividend

A portion of a company's earnings that is distributed to shareholders, usually in the form of cash payments or additional shares.

Geometric Average

A method of calculating the average rate of return that accounts for compounding by taking the nth root (where n is the count of numbers) of the product of the values.

Arithmetic Average

A simple mean calculated by adding a set of numbers and dividing the sum by the count of those numbers, used to determine central tendencies.