Question
Andrew and Amanda are married and file a joint return in 2019. Andrew is a partner in a public accounting firm. His share of the
Andrew and Amanda are married and file a joint return in 2019. Andrew is a partner in a public accounting firm. His share of the partnership's income in the current year is $62,000, and he receives guaranteed payments of $43,000. Amanda receives wages of $57,000 from a large corporation. Requirement What is each taxpayer's self-employment tax amount? (Hint: Guaranteed payments received from a partnership are considered self-employment income.) Calculate Andrew's self-employment tax and then calculate Amanda's self-employment tax. (Do not round intermediary calculations. Only round the amount you input in each cell to the nearest dollar. Complete all input fields. Enter a "0" for any zero balances. Abbreviations used: OASDI = old-age, survivors, and disability insurance; HI = hospital insurance [Medicare].) Andrew Amanda SE tax for OASDI SE tax for HI Total SE tax
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