Question
Example 3-5 George Talbot receives wages amounting to $102,200. His net earnings from self-employment amount to $28,600. Talbot must count $26,200 of his earnings in
Example 3-5
George Talbot receives wages amounting to $102,200. His net earnings from self-employment amount to $28,600. Talbot must count $26,200 of his earnings in determining taxable self-employment income for OASDI taxes.
FICA Taxable Wage Base | Wages Received | = | Taxable SelfEmployment Income | |
$128,400 | $102,200 | = | $26,200 |
George Parker was paid a salary of $74,700 during 20-- by Umberger Company. In addition, during the year, Parker started his own business as a public accountant and reported a net business income of $60,000 on his income tax return for 20--. Compute the following:
a. The amount of FICA taxes that was withheld from his earnings during 20-- by Umberger Company.
OASDI $___________
HI $______________
B. b. Parker's self-employment taxes on the income derived from the public accounting business for 20--.
OASDI $__________
HI $_____________
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