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01-01-2021
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Reverend Isaiah receives an annual salary of $36,000 as a full-time minister. This includes $4,000 designated as rental allowance to pay utilities. Rev. Isaiah is not exempt from self-employment tax. How much must he include when figuring net income for self-employment tax

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Parrain Parrain

03-01-2021

Answer: $36,000

Explanation:

When paying Income Tax, Reverend Isaiah will be allowed to deduct the money designated as rental allowance to pay utilities but when it comes to Self-employment taxes, he must include the entire salary he receives.

This means that the Reverend will have to include his entire annual salary of $36,000 when working out his Self-employment tax.

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