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Tara is the sole shareholder of an S Corporation. Tara's salary and bonus from the S Corporation is $110,000 and the ordinary income of the
Tara is the sole shareholder of an S Corporation. Tara's salary and bonus from the S Corporation is $110,000 and the ordinary income of the S Corporation after deducting all expenses (including Tara's compensation) is $30,000. Tara materially participates in the business.
How much of Tara's income from the S corporation is subject to social security and Medicare taxes?
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