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Andrea has wages of $90,000 and net income from a small unincorporated business of $10,000 for 2016. (Click on the icon to view the self-employment
Andrea has wages of $90,000 and net income from a small unincorporated business of $10,000 for 2016. (Click on the icon to view the self-employment tax rate table.) Requirements a. What is the amount of Andrea's self-employment (SE) and deduction for AGl for her SE tax? b. How would your answer to Part a change if Andrea's wages were $160,000 rather than $90,000?
Category OASDI Medicare Self-Employment Tax 2016 Rate Dollar Limit 12.4 118,500 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)Step by Step Solution
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