Taxpayer A mows lawns during the summer. In 2020 they were paid directly by homeowners for their work, in some case on the basis of the completed job, in other cases at an hourly rate. Taxpayer B does the same work. However, they are paid at an hourly rate by a lawn maintenance company. Which of the following statements is correct?

Question 3 options:

	A and B both earn employment income
	A earns business income and B earns employment income. A will be able to deduct more expenses than B
	A earns business income and B earns employment income. Their deductible expenses will be the same
	A and B both earn business income