Question

The advantage of being self-employed (rather than being an employee) is: A. The overall limitation (50%) on meals does not apply. B. Job-related expenses are deductions for AGI. C. The self-employment tax is lower than the Social Security tax. D. To avoid the self-employment tax. E. All of the self-employment tax deductible for income tax purposes.

Answer 1

Answer:

B.  Job-related expenses are deductions for AGI.

Explanation:

A person is said to be self-employed if he is working for oneself rather than for an employer as a freelancer or the owner of a business.

Adjusted gross income (AGI) refers to the measure of income calculated from your gross income. AGI is used to determine the amount of tax.

The advantage of being self-employed (rather than being an employee) is job-related expenses are deductions for AGI.