Reverend Isaiah receives an annual salary of $36,000 as a full-time minister. This includes $4,000 designated as rental allowanc

Question

3 years ago

6

Reverend Isaiah receives an annual salary of $36,000 as a full-time minister. This includes $4,000 designated as rental allowanc

e to pay utilities. Rev. Isaiah is not exempt from self-employment tax. How much must he include when figuring net income for self-employment tax

Business

1 answer:

muminat · Answer 1 · 2022-11-07T05:39:04+03:00

Answer: $36,000

Explanation:

When paying Income Tax, Reverend Isaiah will be allowed to deduct the money designated as rental allowance to pay utilities but when it comes to Self-employment taxes, he must include the entire salary he receives.

This means that the Reverend will have to include his entire annual salary of $36,000 when working out his Self-employment tax.