Asked by Harun Abdullahi on Jun 04, 2024
Verified
Self-employed persons are allowed a for AGI deduction equal to one-half of the self-employment tax imposed.
Self-employment Tax
A levy aimed at self-employed individuals, designed to contribute towards Social Security and Medicare.
AGI Deduction
Deductions from Adjusted Gross Income (AGI), which lower the AGI and reduce taxable income, potentially qualifying taxpayers for various tax benefits based on their adjusted income levels.
- Recognize the tax implications and benefits for self-employed individuals, including deductions related to self-employment tax and health insurance.
Verified Answer
BK
Briauna KellerJun 09, 2024
Final Answer :
True
Explanation :
This is true according to the IRS guidelines. The deduction is taken on line 14 of Form 1040.
Learning Objectives
- Recognize the tax implications and benefits for self-employed individuals, including deductions related to self-employment tax and health insurance.
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