In: Finance
Which of the following are considered self-employed persons? Check all that apply.
a. |
Partners in a partnership |
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b. |
> 2% owner/employees of S-Corporations |
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c. |
C-Corporation shareholders/employees |
|
d. |
Sole proprietors |
Your client, Mrs. M, owns a sole proprietorship. Her revenues are $130,000; Expenses are: $50,000 general; $5,000 employee health insurance; $3,000 for her health insurance. How much Self-Employment tax will she be able to deduct for AGI?
a. $11,475.00 |
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b. $5,737.50 |
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c. $5,298.58 |
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d. $10,597.16 |
1) d. Sole proprietors , Sole proprietors are independant who are entitled to receive all the profit earned from his business
2) a. $11,475 ,
Adjusted gross income = revenue $130,000 - Expenses $50,000 - employee health insurance $5,000
= $75000
Self employment tax= 15.3 % * $75000
= $11,475.00