Which of the following statements regarding the self-employment tax is most accurate?
A. The self-employment tax base is generally the taxpayer's net income from self-employment (usually net income from Schedule C).
B. Taxpayers who report less than $600 of net income from self-employment (usually net income from Schedule C) are not required to pay self employment taxes.
C. The self-employment tax base is net earnings from self employment which is less than net income from self-employment.
D. The Social Security tax limit does not apply to self-employment taxes.
Answer: C. The self-employment tax base is net earnings from self employment which is less than net income from self-employment.