Question

A taxpayer net income from self employment refers to : a the net profit from their schedule c business or partnership b the net profit from thier schedue c business or partnership , less the adjustment for one half of thier self employment c the net profit from thier schedule c businee or partnership less the amount of any retirement contributions made to thier own account d the net profit from thier schedue c business or partnership less the adjustment for one half of thier self employment tax and the amount of any retirement contributions made to thier own account

Answer 1

The answer is D

A taxpayer net income from self employment refers to:-

the net profit from thier schedue C business or partnership less the adjustment for one half of their self employment tax and the amount of any retirement contributions made to their own account

this is because a self employed person is considered both company and employee. Therefor they have to pay both the social security benefits/retirement plan and the tax on the net earnings of the business.