Juan, who is single, is a self-employed carpenter as well as an employee of Frame It, Inc. His self-employment net income is $35,000, and he received a W-2 from Frame It for wages of $25,000. He is covered by his employer’s pension plan, but his employer does not offer a health plan in which he could participate. Required: Up to how much of his self-employed health insurance premiums could he deduct for this year, if any? How much of Juan’s self-employment taxes would be deductible? a. Percentage of self-employment insurance deductible ???? % Maximum amount of self-employment insurance premium deductible b. Percentage of self-employment taxes deductible ???? %
Juan, who is single, is a self-employed carpenter as well as an employee of Frame It, Inc. His self-employment net income is $35,000, and he received a W-2 from Frame It for wages of $25,000. He is covered by his employer’s pension plan, but his employer does not offer a health plan in which he could participate. Required: Up to how much of his self-employed health insurance premiums could he deduct for this year, if any? How much of Juan’s self-employment taxes would be deductible? a. Percentage of self-employment insurance deductible ???? % Maximum amount of self-employment insurance premium deductible b. Percentage of self-employment taxes deductible ???? %
Chapter6: Business Expenses
Section: Chapter Questions
Problem 59P
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Juan, who is single, is a self-employed carpenter as well as an employee of Frame It, Inc. His self-employment net income is $35,000, and he received a W-2 from Frame It for wages of $25,000. He is covered by his employer’s pension plan, but his employer does not offer a health plan in which he could participate.
Required:
- Up to how much of his self-employed health insurance premiums could he deduct for this year, if any?
- How much of Juan’s self-employment taxes would be deductible?
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