Solution-What amount of self-employment income is subject

What amount of self-employment income is subject

Reference no: EM132824944

Problem 1: A calendar year taxpayer makes and sells custom dog collars. In Year 1, cash receipts from dog collar sales were $10,000 and the cost to make the collars was $2,000. In addition, the taxpayer made a $2,000 qualified contribution to a retirement plan. What amount of self-employment income is subject to self-employment tax for the year?

A. $10,000

B. $8,000

C. $6,000

D. $0

Reference no: EM132824944

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What amount of self-employment income is subject

Reference no: EM132824944

Reference no: EM132824944

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