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employment tax on that income and entitled to a corresponding
deduction for one-half of the self-employment tax to be paid.
Accordingly, and based on the foregoing facts and
discussion, we hold that petitioners failed to report nonemployee
compensation in the amount of $1,125 on their 2003 Federal income
tax return, are liable for self-employment tax on that amount,
and are entitled to a corresponding deduction for one-half of the
self-employment tax to be paid.
Decision will be entered
for respondent.
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Last modified: November 10, 2007