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Exercise 13-31 (LO. 5) Andrea is an employee of Fern Corporation and single. She also has her own business working as a life coach.
Exercise 13-31 (LO. 5) Andrea is an employee of Fern Corporation and single. She also has her own business working as a life coach. For 2020, Andrea's wages from Fern were $210,000. Her self-employment income was $30,000 (line 4, Form SE, based on 92.35% of net earnings as a life coach). If required, round any computations to two decimal places. Round final answers to the nearest dollar. a. Compute the total payroll, self-employment, and additional Medicare taxes for Andrea for 2020. 11,726 X b. Assume the same facts except that Andrea's 2020 self-employment activities resulted in a loss of $15,000. Compute the total payroll, self-employment, and additional Medicare taxes for Andrea for 2020. 11,021 X c. Compute Andrea's NIIT for 2020 using wages of $210,000, self-employment income of $30,000 and NII of $20,000. There are no expenses allocable to any investment income. 760
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