Final answer:
Self-employed taxpayers may deduct the employer portion of their self-employment taxes from their adjusted gross income (AGI).
Step-by-step explanation:
The answer to the question is option b) From AGI. Self-employed taxpayers may deduct the employer portion of their self-employment taxes from their adjusted gross income (AGI).
Self-employed individuals are responsible for paying the full amount of their self-employment taxes, which include both the employer and employee portions. However, they are allowed to deduct the employer portion of these taxes from their AGI when calculating their taxable income.
For example, if a self-employed individual earns $100,000 in income and has $15,000 in self-employment taxes, they can deduct the employer portion of those taxes, which would typically be 50% of the total, from their AGI.