A worker may prefer to be treated as an independent contractor (rather than an employee) for which of the following reasons:
A)Avoids the overall limitation (50%) as to business meals.
B)All of the self-employment tax is deductible for income tax purposes.
C)Work-related expenses of an independent contractor are deductible for AGI.
D)A Schedule C does not have to be filed.
E)None of these.

Question

Quizplus · Accepted Answer

Work-related expenses of an independent contractor are deductible for AGI, which can result in a lower taxable income and potentially save money on taxes compared to being an employee. The other options listed do not necessarily provide a clear advantage to being treated as an independent contractor.

A Worker May Prefer to Be Treated as an Independent