Self-Employed & 1099 Taxes (2025) - Tax Quiz

Question 1 of 25

What is the total self-employment tax rate on net self-employment earnings for 2025?

7.65 percent 12.4 percent 15.3 percent 2.9 percent

Question 2 of 25

The 15.3 percent self-employment tax rate is split into which two components?

10 percent income tax and 5.3 percent payroll tax 12.4 percent Social Security and 2.9 percent Medicare 7.65 percent federal and 7.65 percent state 13.3 percent Social Security and 2 percent Medicare

Question 3 of 25

What minimum amount of net earnings from self-employment generally requires you to file Schedule SE and pay self-employment tax?

$400 $600 $1,000 $2,000

Question 4 of 25

Which form does a sole proprietor use to report business profit or loss?

Schedule A Schedule C Schedule D Form 1065

Question 5 of 25

Which schedule is used to figure the self-employment tax you owe?

Schedule SE Schedule C Schedule B Schedule E

Question 6 of 25

When figuring self-employment tax, what percentage of your net earnings is generally the amount subject to the tax?

100 percent 92.35 percent 80 percent 50 percent

Question 7 of 25

What portion of your self-employment tax can you deduct when figuring your adjusted gross income?

The full amount One-half One-quarter None of it

Question 8 of 25

How does the deduction for one-half of self-employment tax affect your taxes?

It reduces the self-employment tax you owe It reduces your net earnings from self-employment It only affects your income tax, not your self-employment tax It increases your self-employment tax

Question 9 of 25

For 2025, the 12.4 percent Social Security portion of self-employment tax applies only up to what amount of combined wages and net earnings?

$160,200 $168,600 $176,100 $200,000

Question 10 of 25

Is there a wage base limit on the 2.9 percent Medicare portion of self-employment tax?

No, all net earnings are subject to the Medicare portion Yes, the same limit as Social Security Yes, but only $50,000 Yes, $250,000 for everyone

Question 11 of 25

What is the maximum percentage of qualified business income that the QBI deduction allows eligible taxpayers to deduct?

10 percent 15 percent 20 percent 50 percent

Question 12 of 25

Can you claim the QBI deduction if you take the standard deduction instead of itemizing?

No, you must itemize to claim it Yes, it is available whether you itemize or take the standard deduction Only if your income is below $50,000 Only on Schedule A

Question 13 of 25

Which simplified form is used to compute the QBI deduction when taxable income is at or below the 2025 threshold?

Form 8995 Form 8829 Form 2106 Form 1040-ES

Question 14 of 25

What is the standard business mileage rate for 2025?

65.5 cents per mile 67 cents per mile 70 cents per mile 72.5 cents per mile

Question 15 of 25

Under the simplified method for the home office deduction, what is the prescribed rate per square foot?

$3 per square foot $5 per square foot $10 per square foot $1.50 per square foot

Question 16 of 25

What is the maximum square footage allowed under the simplified home office deduction method?

100 square feet 300 square feet 500 square feet 1,000 square feet

Question 17 of 25

What is the maximum deduction available under the simplified home office method?

$1,000 $1,500 $2,500 $5,000

Question 18 of 25

To qualify for the home office deduction, how must the space generally be used?

Occasionally for any purpose Regularly and exclusively for business For storage of personal items Only on weekends

Question 19 of 25

Which form do individuals use to figure and pay quarterly estimated tax?

Form 1040-ES Form W-4 Form 1099-NEC Form 8829

Question 20 of 25

You generally must make estimated tax payments if you expect to owe at least how much after withholding and credits?

$100 $500 $1,000 $5,000

Question 21 of 25

In a typical calendar year, how many estimated tax payment periods are there?

Two Three Four Twelve

Question 22 of 25

To avoid an underpayment penalty, you generally must pay at least 90 percent of the current year's tax or what percentage of the prior year's tax (for most taxpayers)?

50 percent 75 percent 100 percent 120 percent

Question 23 of 25

A business that pays a nonemployee $600 or more for services in a year generally must report it on which form?

Form W-2 Form 1099-NEC Form 1099-DIV Form 1098

Question 24 of 25

If you do not receive a Form 1099-NEC for income you earned, are you still required to report that income?

No, only income reported on a 1099 is taxable Yes, you must report all self-employment income even without a 1099 Only if it exceeds $20,000 Only if the payer files the form

Question 25 of 25

How long should employment tax records generally be kept?

At least 1 year At least 2 years At least 4 years after the tax becomes due or is paid Indefinitely in all cases