Which of the following types of income is subject to the self-employment tax?

Question

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The income from a sole proprietor's coffee shop is subject to the self-employment tax. The self-employment tax is levied on net self-employment income, which is the income earned by individuals who work for themselves, such as sole proprietors, freelancers, and independent contractors. It is calculated on their Schedule SE and includes Social Security and Medicare taxes.

B, C and D are not subject to the self-employment tax. Gain on the sale of a home may be subject to capital gains tax, W-2 income has already had taxes withheld by the employer, and interest earned on a bank account is subject to income tax, but not self-employment tax.

Which of the Following Types of Income Is Subject to the Self-Employment