Question
Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a partnership). Sarah does not do any work for Beehive. Beehive LLC. reported
Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a partnership). Sarah does not do any work for Beehive. Beehive LLC. reported $600,000 of taxable business income for the year (2020). Before considering her 50 percent business income allocation from Beehive and the self-employment tax deduction (if any), Sarahs adjusted gross income is $150,000 (all employee salary). Answer the following questions for Sarah. (Leave no answer blank. Enter zero if applicable.)
What is Sarahs self-employment tax liability?
What is Sarahs additional Medicare tax liability?
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