Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me solve required A Mrs. Singer owns a profitable sole proprietorship. For each of the following cases, use a Schedule SE, Form 1040,
Please help me solve required A
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: a. Compute 2020 self-employment tax and the income tax deduction for such tax if Mrs. Singer's net profit from Schedule C was $51,458. She had no other earned income. b. Compute 2020 self-employment tax and the income tax deduction for such tax if Mrs. Singer's net profit from Schedule C was $51,458, and she received a $100,000 salary from an employer. c. Compute 2020 self-employment tax and the income tax deduction for such tax if Mrs. Singer's net profit from Schedule C was $51,458, and she received a $145,000 salary from an employer. Complete this question by entering your answers in the tabs below. Schedule SE Schedule SE Part a Schedule SE Part c Part b Compute 2020 self-employment tax and the income tax deduction for such tax Mrs. Singer's net profit from Schedule C was $51,458. She had no other earned income. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar value. Input all the values as positive numbers.) SCHEDULE SE OMB No. 1545-0074 Self-Employment Tax (Form 1040) 2020 Department of the Treasury Go to www.irs.gov/ScheduleSE 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 1040-NR) Attachment Sequence No. 17 Social security number of person with self-employment income Part I Self-Emplovment Tax A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part I Skip lines 1a 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. 1b 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 4a 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 4b 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 -0- and continue 4c 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income 5a 5b b Multiply line 5a by 92.35% (0.9235). If less than $100, enter -0- 6 Add lines 4c and 5b 6 7 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 8a 8b 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 9 9 Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 10 Multinly the smaller of line 6 or line 9hv 12 4% (124) 10 23 0 137,700 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: a. Compute 2020 self-employment tax and the income tax deduction for such tax if Mrs. Singer's net profit from Schedule C was $51,458. She had no other earned income. b. Compute 2020 self-employment tax and the income tax deduction for such tax if Mrs. Singer's net profit from Schedule C was $51,458, and she received a $100,000 salary from an employer. c. Compute 2020 self-employment tax and the income tax deduction for such tax if Mrs. Singer's net profit from Schedule C was $51,458, and she received a $145,000 salary from an employer. Complete this question by entering your answers in the tabs below. Schedule SE Schedule SE Part a Schedule SE Part c Part b Compute 2020 self-employment tax and the income tax deduction for such tax Mrs. Singer's net profit from Schedule C was $51,458. She had no other earned income. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar value. Input all the values as positive numbers.) SCHEDULE SE OMB No. 1545-0074 Self-Employment Tax (Form 1040) 2020 Department of the Treasury Go to www.irs.gov/ScheduleSE 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 1040-NR) Attachment Sequence No. 17 Social security number of person with self-employment income Part I Self-Emplovment Tax A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part I Skip lines 1a 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. 1b 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 4a 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 4b 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 -0- and continue 4c 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income 5a 5b b Multiply line 5a by 92.35% (0.9235). If less than $100, enter -0- 6 Add lines 4c and 5b 6 7 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 8a 8b 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 9 9 Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 10 Multinly the smaller of line 6 or line 9hv 12 4% (124) 10 23 0 137,700Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started