A worker may prefer to be treated as an independent contractor (rather than an employee) for which of the following reasons:
A)Avoids the cutback adjustment as to business meals.
B)All of the self-employment tax is deductible for income tax purposes.
C)Work-related expenses are not subject to the 2%-of-AGI floor.
D)A Schedule C does not have to be filed.
E)None of the above.

Question

Quizplus · Accepted Answer

Independent contractors can deduct work-related expenses directly on Schedule C, avoiding the 2%-of-AGI floor that applies to employees.

A Worker May Prefer to Be Treated as an Independent