Tax Advantages of Being Self-Employed (Rather Than Being an Employee)

question 88

Multiple Choice

Tax advantages of being self-employed (rather than being an employee) include:

• A) The self-employment tax is lower than the Social Security tax.
• B) The overall limitation (50%) on meals does not apply.
• C) An office in the home deduction (for AGI) is available.
• D) Job-related expenses are deductions for AGI.
• E) Both c. and d. are advantages.

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Definitions:

Social-psychological Theory

A theoretical perspective that examines how individual psychology and social influences interact to shape behaviors and attitudes.

Vulnerable Personality

A term describing individuals who are more susceptible to psychological distress, manipulation, or harm due to certain personality traits.

Drinking-group Values

The norms and beliefs held by a group of individuals regarding the consumption of alcohol.

Prealcoholic Stage

The initial phase in the development of alcoholism, characterized by occasional, social, or stress-related alcohol use that may escalate to dependency.