Freeman, a single individual, reported the following income in the current year: - Guaranteed payment from services rendered to a partnership: $50,000 - Ordinary income from an S corporation $20,000 What amount of Freeman's income is subject to self-employment tax?

Freeman, a single individual, reported the following income in the current year: - Guaranteed payment from services rendered to a partnership: $50,000 - Ordinary income from an S corporation $20,000 What amount of Freeman's income is subject to self-employment tax?

Freeman, a single individual, reported the following income in the current year:
- Guaranteed payment from services rendered to a partnership: $50,000
- Ordinary income from an S corporation $20,000
What amount of Freeman's income is subject to self-employment tax?






a. $0
b. $20,000
c. $50,000
d. $70,000






Answer: C