In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions, which of the following items involve people who are self-employed?
A)Schedule C (Form 1040).
B)Form W-4.
C)Form W-2.
D)Schedule A (Form 1040).
E)None of these.

Question

Quizplus · Accepted Answer

Schedule C (Form 1040) is used by self-employed individuals to report their income and expenses from their business. Form W-4 is used by employees to indicate their withholding preferences for federal income tax. Form W-2 is used by employers to report wages and salaries, as well as taxes withheld, to their employees and the government. Schedule A (Form 1040) is used by individuals to report itemized deductions on their tax return. Therefore, only the option A involves people who are self-employed.

In Contrasting the Reporting Procedures of Employees and Self-Employed Persons