Each of the following statements is correct with respect to the farm optional method of computing self-employment tax EXCEPT: (A) If gross farm income is $8,460 or less, self-employment tax may be computed on the amount of gross farm income. (B) If gross farm income is $8,460 or less, a farmer can elect the optional method, regardless of the amount of net farm income. (C) If gross farm income is more than $8,460, a farmer can elect the optional method if net farm income is less than $6,107. (D) If gross farm income is more than $8,460 and net farm income is less than $6,107, self-employment tax, using the optional method, is computed on $8,460.

Each of the following statements is correct with respect to the farm optional method of computing self-employment tax EXCEPT: (A) If gross farm income is $8,460 or less, self-employment tax may be computed on the amount of gross farm income. (B) If gross farm income is $8,460 or less, a farmer can elect the optional method, regardless of the amount of net farm income. (C) If gross farm income is more than $8,460, a farmer can elect the optional method if net farm income is less than $6,107. (D) If gross farm income is more than $8,460 and net farm income is less than $6,107, self-employment tax, using the optional method, is computed on $8,460.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter12: Tax Credits And Payments

Section: Chapter Questions

Problem 1BCRQ

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