John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Self Employment Tax 

"What income is subject to self employment tax?"

Income that is subject to self employment tax:

• Trade or business income

• Commissions

• Real estate broker activity

• Executor or trustee fees if performed regularly

 Income that is not subject to self employment tax:

• Rental income

• Investment income (interest, dividends, and capital gains)

• Unemployment benefits

• Social security income

• Alimony