Which of the following is not subject to self-employment tax?

a. Gain on the sale of real estate held for investment

b. Net earnings of a self-employed lawyer

c. Distributive share of earnings of a partnership

d. Net earnings of the owner of a shoe store

e. Net earnings of the owner of a dry cleaner

Abbe, age 56, is married and has two dependent children over age 17. Abbe has one job, and her husband, age 58, is not employed. If she expects to earn wages of $50,000, how many allowances should Abbe claim on her Form W-4 for 2015?

a. 4

b. 5

c. 7

d. 8

e. 9

Michele is single with no dependents and earns $23,000 this year. Michele claims sixteen allowances on her Form W-4 for 2015. Which of the following is correct concerning her Form W-4?

a. Michele may not under any circumstances claim sixteen allowances.

b. Michele's employer will require her to verify her right to claim sixteen allowances.

c. Michele's employer will disregard her Form W-4 and withhold as single with no allowances.

d. Michele's employer will submit a copy of her W-4 to the IRS if directed to do so by written notice.

e. None of these choices are correct.