15. Which of the following is correct regarding self-employment taxes? I. For pu
ID: 2392546 • Letter: 1
Question
15. Which of the following is correct regarding self-employment taxes?
I. For purposes of the portion of self-employment tax that is equivalent to Social Security tax,
taxable self-employment income is limited to a prescribed maximum amount reduced by other
wages earned by the taxpayer that are subject to FICA and Medicare taxes.
II. For purposes of the portion of self-employment tax that is equivalent to the Medicare tax,
taxable self-employment income is limited to a prescribed maximum amount reduced by other
wages earned by the taxpayer that are subject to FICA and Medicare taxes.
I only
II only
Neither I or II
I and II
Explanation / Answer
For purposes of the portion of self-employment tax that is equivalent to Social Security tax, taxable self-employment income is limited to a prescribed maximum amount reduced by other wages earned by the taxpayer that are subject to FICA and Medicare taxes. Option 1 is correct
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