What is the amount of self-employment tax that would be paid by Andy for the year assuming he earned $128,100 while working as an employee of the University and another $20,000 from a sales business he owns? Select one: a. S1,190.40 b. S1,726.03 C. $535.63 d. S2,825.91 е. None of these

What is the amount of self-employment tax that would be paid by Andy for the year assuming he earned $128,100 while working as an employee of the University and another $20,000 from a sales business he owns? Select one: a. S1,190.40 b. S1,726.03 C. $535.63 d. S2,825.91 е. None of these

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 19CE

See similar textbooks

Related questions

Q: 2: Martin Hughes earns net self-employment income of $157,100. He works a second job from which he…

A: Taxes are forced contributions imposed by a agency on individuals or corporations, whether…

Q: Consider the situation below showing the weekly income tax of a single (civil status) employee in a…

A: Given income tax is $1,980.18 From the given table we can observe that if income is more than $7,958…

Q: Annie's employer withheld $10,488 in federal income tax. After completing her return, Anvie…

A: Federal income tax:- It is the tax amount that an individual owes to the government. It is the tax…

Q: Used the 2016 FICA tax rates from below to answer the following question. if a taxpayer is not…

A: Using 2016 FICA tax rates:Tax rate is:7.65% on first $118500 of Income1.45% on Income in excess of…

Q: Mary Singn, has the following intormation her İncome Tax Return this year: Net Taxable Capital Gains…

A: Capital gains are those gains which the company makes from selling the assets and assets usually…

Q: Christine and Doug are married. In 2018, Christine earns a salary of $250,000 and Doug earns a…

A: Medicare Tax: It is a tax imposed by the Federal Insurance Contributions Act on both employers and…

Q: Alex, single, earns wags of $42,000 in 2021. He also conducts an activity that produces the…

A: Taxable income is a concept that can be easily derived from its name, tax on income earned. Tax is…

Q: a. Assume that Eva is concidered to be an employee. What amount of FICA taxes is she required to pay…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: Required information [The following information applies to the questions displayed below.] Jeremy…

A: Tax refund or liability is calculated by applying the current tax rates on the taxable income and…

Q: This year, Paula and Simon (married filing jointly) estimate that their tax liability will be…

A: Tax payments are the liability of the individual, that, needs to be paid to the government on…

Q: Mary is a self-employed attorney. a. Assuming that Mary earns $27,500 from her practice,…

A: For the 2020 tax year, the self-employment tax rate is 15.3%. Social Security represents 12.4% of…

Q: Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is not…

A: The tax payer is not self employed. He will therefore be governed by the employee's tax rates.Income…

Q: Jordan pays $3,000 in tuition to New York University for completion of his Masters in Tax degree.…

A: If you’re self-employed, you can deduct the cost of education for your trade or business on Schedule…

Q: Karen Most has a federal tax levy of $2,100.50 against her. If Most is single with two personal…

A: Tax: It is levied on individual and the Corporation by the Federal Government of the country.

Q: 1.Ian, 37, and Isabella, 36, are married and file a joint tax return. They have one child, Ingrid…

A: Gross profit refers to the amount of money earned by a company or an entity in a desired financial…

Q: compute the tax owed by a single woman with a taxable income of $600,000.

A: 2021 tax brackets have been taken into consideration during the calculation. Tax payable on $600,000…

Q: Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is not…

A: Federal Insurance Contributions Act is a common tax deducted from income from taxpayers to meet the…

Q: Keith has a 2021 tax liability of $2,250 before taking into account his American Opportunity tax…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Roger and Nicole are married filing a joint income tax return. Their AGI for 2021 is $98,000. They…

A: Lifetime Learning Tax Credit is the amount by which investor can reduce their net tax liability for…

Q: Paul is self-employed as a dentist. He practices under the name "Paul J. Vance, DDS." Paul's gross…

A: Particulars Amount 1.Gross receipts $111000 2.- Business…

Q: Alex earns an income of $60,000 this year as a sole proprietor. He pays the following amounts during…

A: Calculation of Alex’s Adjusted Gross Income (AGI) : Alex’s income…

Q: 45. According to Josh's W-2 statement, his wages were $27,391 for the previous year. He also earned…

A: Taxable income= Gross income- Adjustments- standard deduction Gross income= Wages+ interest income =…

Q: what are the taxpayer's FICA taxes?

A: Income tax is a direct tax and it is obliged to be paid to the government. Income tax payable is…

Q: . In the illustration on number 1, Ms. X likewise earned P1,000,000 from employment with XYZ Company…

A: Answer: Income from employment = P 1,000,000 Tax rate applicable in Philippines is 32% Income tax…

Q: What is her self-employment tax liability and additional Medicare tax liability for 2020? Thx,

A: For self-employed FICA tax rate for 2020 is 15.3% on first $137,700 of net income plus 2.9% on the…

Q: Paquito, a university instructor, earns a gross monthly salary of ₱46,200.00. Paquito is married and…

A: Net income per month = 46200 - 590 - 397.50 - 100 - 4300 = 40812.50 Net income per year = 40812.50 *…

Q: [The following information applies to the questions displayed below.]Jeremy earned $100,900 in…

A: Tax year is not given, thus 2019 is taken as base year for computation.

Q: 1. Meredith owns her own business. In 2020, she had business revenue of $268,450 and business…

A: Self employment tax is defined as the tax imposed that the small business owner need to pay to the…

Q: Morgan Cruise earns net self-employment income of $221,600. She works a second job from which she…

A: Total self employment tax = 11,229.80

Q: Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is…

A: Given, Taxpayer = Self-employed Earn = $167,000

Q: Kevin owns a small business with two employees. For one payroll period the total withholding tax for…

A: Total social security tax=12.4% of gross payment 6.2% for employees 6.2% for employer Medicare…

Q: Darius' net income from self-employment reported on Schedule C is $25,000. Calculate his…

A: Self-employment tax consists of social security and medicare taxes for the individuals working for…

Q: rried, resident citizen with two qualified dependent children, has the following data for the year…

A: Taxable Compensations : Federal and state payroll tax laws generally identify taxable compensation…

Q: Required: Calculate Roberta's net tax payable or refund due for 2018. Assume a qualifying…

A: Transaction between related parties: The code imposes limitations on the recognition of losses from…

Q: A purely self-employed individual’s gross sales/receipts and other non-operating income do not…

A: VAT Special Rate applicability to Self Employed Individuals: The 8% tax is applicable only to…

Q: 3. Fess receives wages totaling $75,700 and has net earnings from self-employment amounting to…

Q: Suppose that Carson earns $80,000 per year. Now suppose that he must pay income taxes according to…

A: Income tax=Taxable income×tax rate

Q: engaged in renting out 250 apartment units to small families for P13,000 per month. All units are…

A: Tax refers to the percentile charges levied by the government over the income gained by an entity.

Q: Baily owns and operates Ben’s Red Truck Shop (BRT), which is a sole proprietorship. She has…

A: Introduction: Taxable income: Income tax is levied on taxable income only.

Q: Morgan Cruise earns net self-employment income of $221,000. She works a second job from which she…

A: As per IRS self-employment tax rate in 2019, the self-employment income is entitled to a total of…

Q: Jason is self-employed. He has self-employment income of $100,000, and expenses of $80,000. Jason…

A: Correct answer is $80,000 Explanation

Q: Morgan Cruise earns net self-employment income of $221,000. She works a second job from which she…

A: Given that: Self employment Income = $221000 FICA taxable earnings = $108200

Q: Use the 2012 FICA tax rates, shown below, to answer the following question. If you are not…

A: When a company records the compensation of its employees, such type of accounting is known as…

Q: The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3,…

A: Since Alicia is single the standard deduction for her as per the table is $12400 Calculation of…

Q: Is RR allowed to avail himself of the eight percent (8%) income tax? How will RR’s tax liability be…

A: Tax liability is the liabilities which have to be computed as per the tax rates specified by the…

Q: in 2018, miranda records net earnings from self-employment of $146,000. she has no other income.…

A: The question is based on the concept of taxation

Q: Calculate the amounto of self -employment tax that Aaron will be required to pay for the tax year…

A: Sepf employment tax rate 2020 = 15.3% Income = 345000-150000= 195000

Q: Use the following federal tax table for biweekly earnings of a single person to help answer the…

A: Before answering the question related to withheld tax we first need to know the meaning of withheld…

Q: A purely self-employed individual’s gross sales/receipts and other non-operating income do not…

A: Gross sales refer to the total sales of all the transactions of sales in a particular period of…

Question

What is the amount of self-employment tax that would be paid by Andy for the year assuming he
earned $128,100 while working as an employee of the University and another S20,000 from a sales
business he owns?
Select one:
a.
S1,190.40
b.
S1,726.03
C.
$535.63
d.
$2,825.91
e.
None of these

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Federal Insurance Contributions Act (FICA)

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Melodie's taxable income is $39,000 and she pays income tax of $4,489. If Melodie's taxable income increases to $41,000, she would pay income taxes of $4,884. What is Melodie's marginal tax rate? 19.75 22.00 18.50 12.00 Some other amount
Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys net self-employment income is also 136,000. Calculate the Social Security and self-employment taxes paid by Darrell and Whitney. Write a letter to Whitney in which you state how much she will have to pay in Social Security and self-employment taxes and why she owes those amounts.
Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax liability before credits is 190,000, and her TMT is 150,000. a. What is Lisas AMT? b. What is Lisas regular income tax liability after credits?
Compute the 2019 standard deduction for the following taxpayers. a. Ellie is 15 and claimed as a dependent by her parents. She has 800 in dividends income and 1,400 in wages from a part-time job. b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is 10,000. c. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is 500, and her interest income is 125. d. Frazier, age 55, is married but is filing a separate return. His wife itemizes her deductions.
ESTIMATING TAXABLE INCOME, TAX LIABILITY, AND POTENTIAL REFUND. Hannah Owens is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned 55,000 as a sales assistant for Business Solutions: 3,910 of her wages was withheld for federal income taxes. In addition, she had interest income of 142. She takes the standard deduction. Calculate her taxable income, tax liability, and tax refund or tax owed for 2015.
Eagle Life Insurance Company pays its employees 0.30 per mile for driving their personal automobiles to and from work. The company reimburses each employee who rides the bus 100 a month for the cost of a pass. Tom collected 100 for his automobile mileage, and Mason received 100 as reimbursement for the cost of a bus pass. a. What are the effects of the above on Toms and Masons gross income? b. Assume that Tom and Mason are in the 24% marginal tax bracket and the actual before-tax cost for Tom to drive to and from work is 0.30 per mile. What are Toms and Masons after-tax costs of commuting to and from work?
LO2 Joyce Lee earns 30,000 a year. Her employer pays a matching Social Security tax of 6.2% on the first 118,500 in earnings, a Medicare tax of 1.45% on gross earnings, and a FUTA tax of 0.6% and a SUTA tax of 5.4%, both on the first 7,000 in earnings. What is the total cost of Joyce Lee to her employer? (a) 32,295 (b) 30,000 (c) 30,420 (d) 32,715