Which of the following statements is true for entity owners who pay the self-employment tax and the additional Medicare tax?
A)Both the self-employment tax and the additional Medicare tax are deductible for AGI in full.
B)Half of the self-employment tax and half of the additional Medicare tax are deductible for AGI.
C)Half of the self-employment tax and none of the additional Medicare tax are deductible for AGI.
D)None of the self-employment tax and none of the additional Medicare tax are deductible for AGI.

Question

Quizplus · Accepted Answer

Half of the self-employment tax is deductible for adjusted gross income (AGI) to offset the fact that employers would normally pay half of the Social Security and Medicare taxes for their employees. However, the additional Medicare tax is not deductible for AGI.

Which of the Following Statements Is True for Entity Owners