Question

Self-employed individuals may claim, as a deduction for adjusted gross income, 50 percent of theirA) traditional IRA contributions.B) disability insurance premiums.C) health insurance premiums.D) self-employment tax.

Answer 1

Answer:

D) self-employment tax.

Explanation:

According to the Internal Revenue Code (IRC), self-employed people can apply for an income tax deduction equivalent to half of the self-employment tax, this with the purpose of putting self-employed taxpayers in a approximate position of equal conditions with respect to regular employees, who do not pay taxes on the portion of healthcare and social security paid by their employers.