PSa 5-9 Calculate Self-Employment Tax

For each of the following individuals, calculate the applicable self-employment tax. Assume that each individual files tax returns under Married Filing Jointly status.

NOTE:For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:

Annabelle Jefferson earns net self-employment income of $68,400. She does not work a second job.

Self-Employment tax =

2:

Alexander Ryan earns net self-employment income of $116,900. He works a second job from which he receives FICA taxable earnings of $46,600.

Self-Employment tax =

3:

Morgan Cruise earns net self-employment income of $220,500. She works a second job from which she receives FICA taxable earnings of $110,600.00.

Self-Employment tax =