Question

In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions, which of the following items involve self-employed?

a. Schedule C of Form 1040
b. Form W-2
c. Form 2106
d. Schedule A of Form 1040
e. None of these choices are correct.

Answer 1

Self-employed individuals use Schedule C of Form 1040 to report their business income and deductions.So, the correct answer is a. Schedule C of Form 1040, which involves self-employed individuals.

Step-by-step explanation:

The reporting procedures of employees and self-employed persons differ when it comes to job-related transactions. Schedule C of Form 1040 is the tax form that self-employed individuals use to report their business income and deductions. This form allows them to calculate their net profit or loss from their business activities.

On the other hand, Form W-2 is used by employees to report their wages, salary, and other compensation received from an employer. It shows the amount of taxes withheld from their paycheck.