Alyssa has wages of $95,000 and net income from a small unincorporated business of $60,000

for 2016

Self-Employment Tax - 2016

Category Rate Dollar Limit

OASDI 12.4% $118,500

Medicare 2.90% First $200,000 of self-employment income ($250,000 combined self-employment income for joint returns)

3.80% Self-employment income greater than $200,000 ($250,000 for joint returns)

Requirements

a. What is the amount of Alyssa's self-employment (SE) tax and deduction for AGI for her SE tax?

b. How would your answer to Part a change if Alyssa's wages were $160,000 rather than $95,000?

Requirement a. What is the amount of Alyssa's self-employment (SE) tax and deduction for AGI for her SE tax?

Begin by completing the table below to show Alyssa's SE tax for 2016 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].)

2016:
SE tax for OASDI
SE tax for HI
Total SE tax