Tax advantages of being self-employed (rather than being an employee) include:
A) The self-employment tax is lower than the Social Security tax.
B) The overall limitation (50%) on meals does not apply.
C) An office in the home deduction (for AGI) is available.
D) Job-related expenses are deductions for AGI.
E) Both c. and d. are advantages.

Question

Quizplus · Accepted Answer

Both options c. (an office in the home deduction for AGI) and d. (job-related expenses are deductions for AGI) are tax advantages of being self-employed. By being self-employed, you have more flexibility in claiming deductions for expenses related to your business. This can include expenses such as office rent, supplies, equipment, and travel costs. Additionally, you may be able to deduct a portion of your home expenses if you use your home as your primary place of business. These deductions can help to lower your taxable income and reduce your overall tax burden.

Tax Advantages of Being Self-Employed (Rather Than Being an Employee)