Question

QUESTION 48

1. Which of the following incomes is subject to self-employment FICA tax?

   		Rental real estate income
   		Part-time independent contractor's net income
   		Unemployment compensation
   		Dividend income

QUESTION 49

1. Alexis is single and in the 22% tax bracket. For the current year, assume she claims a standard deduction of $12,000. In addition, she is able to take a $1,000 education tax credit. What is the total tax benefit derived by Alexis as a result of claiming these items on her tax return?

   		$1,000
   		2,860
   		$3,640
   		$12,220
   		$13,000

Answer 1

Question 48:

Part time independent contractor’s net income (option 2) is the correct answer. Because,

Remaining all other are not comes under self employment FICA tax.

Self – employment covers sole Proprietor business, Independent contractor income, Firm business..

Question 49:

Option 3 is the correct answer that $3,640. See the below calculations

Net Tax Benefit:

Particulars	Amount	Calculations	Tax amount Benefit
Standard Deduction	12000.00	12000*22%	2,640.00
Education tax credit			1,000.00
Total tax benefit	3,640.00