stevenkhaauhs1740 stevenkhaauhs1740
  • 22-07-2020
  • Business
contestada

Alice is single and self-employed in 2019. Her net business profit on her Schedule C for the year is $100,000. What is her self-employment tax liability for 2019?

Respuesta :

stanfordgoddy stanfordgoddy
  • 24-07-2020

Answer:

$15,300

Explanation:

Remember, under the FICA Tax rate for 2019, the charge is 15.3% on first $132,900 of net income plus 2.9% on the net income in excess of $132,900. However, Alice net income is only about $100,000.

So, her Self employment tax liability =100,000 x 15.3% = $15,300 (since her net income doesn't exceed $132,900 we need not apply the 2.9% charge)

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