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Joan is a self-employed consultant. What is her exposure to the Federal self-employment tax? What tax rates that apply to Joan's profits, and the income
Joan is a self-employed consultant. What is her exposure to the Federal self-employment tax? What tax rates that apply to Joan's profits, and the income base amounts for the year?
Discussion Question 12-9 (LO. 6) Joan is a self-employed consultant. What is her exposure to the Federal self-employment tax? What tax rates that apply to Joan's profits and the income base amounts for the year? Individuals with net earnings of s400 or more from self-employment are subject to the self-employment tax. For 2017, the self-employment tax is 12.4percent of self-employment earnings up to for the Social Security portion plus 2.9 percent of the total amount of self-employment earnings for the Medicare portion. Self-employed taxpayers deduct a portion of the self-employment tax in determining the self-employment tax as well as a deduction for computing AGI. Feedback Check My WorkStep by Step Solution
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