7. Schedule C revenues of $50,000, COGS of $10,000, Office Supplies of $1,000, Business Meals of $4,000, FICA taxes of $2,600, and Salary to the Sole Proprietor of $25,000
(2,000) 50% Meals
Net amount reported as a single line item for business income
FICA taxes of $5,200 is approximate (actual is $5,228)
50% is an adjustment to arrive at AGI and 50% is nondeductible
Salary to self is a draw (not a deduction)
As I read this, I ran into a simulation that asked to to determine what is inlcuded in net income and what is not. So I figured the $2,600 is excluded from income, but why is the total amount excluded $5,200? I'm not usure where in the material this was covered, and don't quite understand why we doubled it up..... Any insights?