Question

Alice is single and self-employed in 2019. Her net business profit on her Schedule C for the year is $190,000.

What is her self-employment tax liability and additional Medicare tax liability for 2019? (Round your final answer to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

Self-employment tax liability:

Additional Medicare tax liability:

Answer 1

Question

Answer :

	Social Security	Medicare
‘Adjusted’ earnings	$132,900	$190,000
Less: self-employment adjustment ( x 92.35%)	0	-14,535
Taxable self-employment income	$132,900	$175,465
	Social Security	Medicare
Taxable self-employment income	$132,900	$175,465
Tax Rate (12.4% SS, 2.9% Medicare)	$16,480	$5.088
Total self employement tax = $ 16,480 + $ 5088 =$21,586
Additional Medicare tax liablity= Nil
threshold limit for additional medicare is $ 200,000