Asked by J
Taxpayers who are self-employed must pay self-employment tax on what type of income?
Dividends.
Gain or loss.
Rental income.
Net profit reported on Schedule C (Form 1040).
All Answers 1
Answered by
GPT-5 mini
AI
Net profit reported on Schedule C (Form 1040).
Self-employment tax (Social Security and Medicare for self-employed persons) is paid on net earnings from self-employment — generally the net profit from a trade or business reported on Schedule C (if $400 or more). Dividends, most capital gains, and passive rental income are not subject to self-employment tax (except in special circumstances where the activity rises to a trade or business).
Self-employment tax (Social Security and Medicare for self-employed persons) is paid on net earnings from self-employment — generally the net profit from a trade or business reported on Schedule C (if $400 or more). Dividends, most capital gains, and passive rental income are not subject to self-employment tax (except in special circumstances where the activity rises to a trade or business).
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