Kat has a full-time job, but also runs a part-time business on the side. Kats social security
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Kat has a full-time job, but also runs a part-time business on the side. Kat’s social security wages during 2014 are $88,100, and she reports $40,000 of net profit on Schedule C. How much of Kat’s Schedule C net profit is subject to the OASDI and Medicare parts of the selfemployment tax?
a. $28,900 is subject to the 12.4% OASDI tax; $40,000 is subject to the 2.9% Medicare tax
b. $40,000 is subject to the 12.4% OASDI tax; $40,000 is subject to the 2.9% Medicare tax
c. $36,940 is subject to the 12.4% OASDI tax; $36,940 is subject to the 2.9% Medicare tax
d. $28,900 is subject to the 12.4% OASDI tax; $36,940 is subject to the 2.9% Medicare tax
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Related Book For
Essentials Of Federal Income Taxation For Individuals And Business
ISBN: 9780808038009
15th Edition
Authors: Linda M. Johnson
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