Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Allison has wages of $80,000 and net income from a small unincorporated business of $60,000 for 2020. Click on the icon to view the self-employment
Allison has wages of $80,000 and net income from a small unincorporated business of $60,000 for 2020. Click on the icon to view the self-employment tax rate table.) Requirements a. What is the amount of Allison's self-employment (SE) tax and deduction for AGI for her SE tax? b. How would your answer to Part a change if Allison's wages were $155,000 rather than $80,000? Requirement a. What is the amount of Allison's self-employment (SE) tax and deduction for AGI for her SE tax? Begin by completing the table below to show Allison's SE tax for 2020 and then enter her deduction for AGI for her SE tax. (Round all currency amounts to the nearest whole dollar. Abbreviations used: OASDI = old-age, survivors, and disability insurance; HI = hospital insurance [Medicare].) SE tax for OASDI SE tax for HI Total SE tax Allison's deduction for AGI for her SE tax is Requirement b. How would your answer to Part a change if Allison's wages were $155,000 rather than $80,000? Begin by completing the table below to show Allison's SE tax for 2020 under the revised fact pattern and then enter her revised deduction for AGI for her SE tax. (Round all currency amounts to the nearest whole dollar. Enter a "0" for any zero balances. Abbreviations used: OASDI = old-age, survivors, and disability insurance; HI = hospital insurance [Medicare).) SE tax for OASDI SE tax for HI Total SE tax Allison's revised deduction for AGI for her SE tax is Category Rate Dollar Limit OASDI 12.4% $137,700 First $200,000 of self-employment income ($250,000 combined self employment income 2.9% for joint returns) Self-employment income greater than 3.8% $200,000 ($250,000 for joint returns) Medicare Medicare
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started