Question
During the tax year, Taxpayer, who is single, earned $96,000 in taxable salary from his employer. Taxpayer also conducted a self-employment activity during the year,
During the tax year, Taxpayer, who is single, earned $96,000 in taxable salary from his employer. Taxpayer also conducted a self-employment activity during the year, the net profit of which was $45,000. Determine Taxpayer's Self-Employment tax liability for the year. Reminder that the self-employment tax liability includes the Social Security and Medicare taxes due on the self-employment income only.
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