Mrs. Singer owns a profitable sole proprietorship. For each of the following cases, use a Schedule SE, Form 1040, to compute her 2020 self-employment tax and her income tax deduction for such tax. Required: Compute 2020 self-employment tax and the income tax deduction for such tax if Mrs. Singers net profit from Schedule C was $51,458. She had no other earned income. Compute 2020 self-employment tax and the income tax deduction for such tax if Mrs. Singers net profit from Schedule C was $51,458, and she received a $100,000 salary from an employer. Compute 2020 self-employment tax and the income tax deduction for such tax if Mrs. Singers net profit from Schedule C was $51,458, and she received a $145,000 salary from an employer.

SCHEDULE SE (Form 1040) Self-Employment Tax Department of the Treasury Go to www.irs.gov/ Schedule SE for instructions and the latest information Internal Revenue Service (99) Attach to Form 1040 1040-SR, or 1040-NR. Name of person with self-employment income (as shown on Form 1040, 1040-SR, or Social security number of 1040-NR) person with self-employment income Part 1 Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your in church employee income A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4381, but you had $400 or more of other net earnings from self-employment, check here and continue with Part Skip lines ta and 1b if you use the farm optional method in Part II. See instructions. 1a Netfarm profit or (loss) from Schedule F. line 34, and farm partnerships Schedule K-1 (Form 1085). box 14 code A b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included onSchedule F, line 4b, or listed on Schedule K-1 (Form 1065) box 20. code AH Skip line 2 if you use the nonfarm optional method in Part II. See instructions. 2 Net profit or loss) from Schedule C, line 31: and Schedule K-1 (Form 1065), box 14 code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order 3 Combine lines 1a, 1b, and 2 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 15. see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here c Combine lines 4a and 4b. If less than $400, stop: you don't owe self-employment tax. Exception: If less than $400 and church employee income, enter -2- and continue 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income 5a b Multiply line 5a by 92.35% (0.9235). If less than $100, enter-O- 6 Add lines 4c and 5b 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2020 8a Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement (tier 1) compensation. If $137.700 or more, skip lines 8b through 10, and go to line 11 b Unreported tips subject to social security tax from Form 4137, line 10 c Wages subject to social security tax from Form 8919, line 10 d Add lines 8a, 8b, and 8c 9 Subtract line 3d from line 7. If zero or less, enter -- here and on line 10 and go to line 11 10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124) 11 Multiply line 6 by 2.9% (0.029) 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50% (0.50). Enter here and on Schedule 1 (Form 1040), line 13 3.636 For Paperwork Reduction Act Notice, see your tax return instructions. Cat No. 11358Z you had 8a 8b 8c 0 0 0 14 OME SCHEDULE SE (Form 1040) Self-Employment Tax Department of the Treasury Go to www.irs.gov/ Schedule SE for instructions and the latest information Internal Revenue Service (99) Attach to Form 1040 1040-SR, or 1040-NR. Name of person with self-employment income (as shown on Form 1040, 1040-SR, or Social security number of 1040-NR) person with self-employment Attach income Parti Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income a church employee income A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4381, but you had $400 or more of other net earnings from self-employment, check here and continue with Part 1a 1b 2 3 4a 4b 4c 0 Skip lines fa and 1b if you use the farm optional method in Part II. See instructions. 1a Net farm profit or loss) from Schedule F, line 34, and farm partnerships Schedule K-1 (Form 1085). box 14 code A b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included onSchedule F, line 4b, or listed on Schedule K-1 (Form 1085). box 20. code AH Skip line 2 if you use the nonfarm optional method in Part II. See instructions. 2 2 Net profit or loss) from Schedule C, line 31: and Schedule K-1 (Form 1065), box 14 code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order 3 Combine lines 1a, 1b, and 2 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here c Combine lines 4a and 4b. If less than $400, stop: you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter -- and continue 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income 5a b Multiply line 5a by 92.35% (0.9235). If less than $100, enter-O- 6 Add lines 4c and 5b 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2020 8a Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement (tier 1) compensation. If $137,700 or more, skip lines 8b through 10, and go to line 11 137,700 X b Unreported tips subject to social security tax from Form 4137, line 10 8b c Wages subject to social security tax from Form 8010, line 10 8c 0 dAdd lines 8a. 8b, and 8c 9 Subtract line 3d from line 7. If zero or less, enter -- here and on line 10 and go to line 11 10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124) 11 Multiply line 6 by 2.9% (0.029) 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50% (0.50). Enter here and on Schedule 1 (Form 1040), line 14 13 3.636 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11358Z 5b 6 7 8a 0 8d 9 10 11 12 values as positive numbers. OMB No. 1545-0074 2020 SCHEDULE SE (Form 1040) Self-Employment Tax Department of the Treasury Go to www.irs.gov/Schedule SE for instructions and the latest information. Internal Revenue Service (99) Attach to Form 1040,1040-SR or 1040-NR. Name of person with self-employment income (as shown on Form 1040, 1040-SR, or Social security number of 1040-NR) person with self-employment Attachment Sequence No. 17 income 1b 2. 3 0 4b Part Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and the definition of church employee income. A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4381, but you had $400 or more of other net earnings from self-employment, check here and continue with Part Skip lines ta and 1b if you use the farm optional method in Part II. See instructions. 1a Net farm profit or loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14 code A 1a b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065). box 20. code AH Skip line 2 if you use the nonfarm optional method in Part II. See instructions. 2 Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1085), box 14 code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order 3 Combine lines ta, 1b, and 2 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 4a Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 16. see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here c Combine lines 42 and 4b. If less than $400, stop: you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter -- and continue 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income b Multiply line 5a by 92.35% (0.9235). If less than $100, enter-O- 6 Add lines 4c and 5b 6 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 8.2% portion of the 7.65% 137,700 railroad retirement (tier 1) tax for 2020 8a Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement (tier 1) compensation. If $137,700 or more, skip lines 8b through 10, and go to line 11 b Unreported tips subject to social security tax from Form 4137, line 10 c Wages subject to social security tax from Form 8919, line 10 8c d Add lines 8a, 8b, and 8c 8d 0 9 Subtract line 3d from line 7. If zero or less, enter -D- here and on line 10 and go to line 11 10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124) 11 Multiply line 8 by 2.9% (0.029) 11 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040). line 4 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50% (0.50). Enter here and on Schedule 1 (Form 1040), line 4c 5a 5b 7 8a 8b 9 10 12 0 14 13 0 Schedule SE (Form 1040) 2020 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 113582 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 McGraw-Hill Education