Question
Allison and Jake formed a partnership. Erin has an income of 100,000 plus 51,377. Allison is single and takes the standard deduction. Allison has long-term
Allison and Jake formed a partnership. Erin has an income of 100,000 plus 51,377. Allison is single and takes the standard deduction. Allison has long-term capital gains of 12,500 and interest income from Allison Bank of 900. Allison also received wages as an employee from a different company of 24,000. Allison has no other sources of income or deduction. Determine:
a. The amount of income considered to be earned from self-employment activities
b. The amount of self-employment income subject to social security taxation
c. The social security tax due related to the self-employment income activities
d. The amount of self-employment income subject to medicare taxation
, e. The medicare tax due related to the self-employment income activities
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