Respuesta :
Answer:
$19,790
Explanation:
A taxpayer’s tax base for computing a self-employed taxpayer’s self-employment tax (i.e., net earnings from self-employment) is the taxpayer’s net business profit from Schedule C multiplied by 92.35%.
So, Alice’s net earnings from self-employment is her net profit from Schedule C of $150,000 x 92.35% = $138,525.
Alice will owe $15,773 ($127,200 maximum amount x 12.4%) in Social Security taxes and $4,017 ($138,525 x 2.9%) for the Medicare component of FICA taxes.
Alice owes total self-employment tax of $19,790 ($15,773 + $4,017).
She is not subject to additional Medicare tax because her net earnings from self-employment do not exceed $200,000.
Answer: Her total tax liability is $19,790.23
Explanation:
In calculating Alice's self employment tax liability and medicare tax liability, her net business profit from Schedule C is multiplied by 92.35%.
$150,000 x 92.35% = $138,525.
Being that the maximum taxable amount is $127,200, Alice will owe $127,200 x 12.4% = $15,772.80 in Social Security taxes and
$4,017.23 ($138,525 x 2.9%) for the Medicare component of FICA taxes.
Therefore, the total self-employment tax is $19,790.03 ($15,772.80+ $4,017.23).
