Chapter 9

Question 1

How do FICA rates differ between SE and E

Answer 1

Social security tax rules. SE tax is about twice the FICA rate. SE tax is due on net income whereas employees FICA is due on gross wages

Question 2

How do Income tax rules differ for SE and E

Answer 2

Business expenses for SE are deducted for AGI meanwhile employees cannot deduct unreimbursed expenses

Question 3

When does SE “break even” on FICA tax

Answer 3

When expenses are half of GI

Question 4

Can employees receive a QBI deduction

Answer 4

No. Only self employed filers can deduct 20% of their income as QBI

Question 5

What are general work expenses

Answer 5

Transportation
Travel
Education
Business related entertainment

Question 6

How are transportation expenses deducted

Answer 6

Very limited and must be from local job site to local job site or commuting to/from temporary work place. Must keep record of deductible car expense. 57 cents per business mile