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.

---

Definitions:

Simp

A slang term often used to criticize a person who is perceived as giving excessive attention to someone they have an interest in, typically in a way that is not reciprocated.

Conj

An abbreviation for "conjunction," which is a compound statement formed by combining two statements with the word "and."

Add

To combine or join something with another, resulting in a sum or total.

Sex-Linked

A characteristic, such as a genetic disorder, that is determined by genes located on the sex chromosomes, typically the X or Y chromosome.