Beau earned $25,000 of net earnings from a tax preparation business that he runs during tax...
Question:
Beau earned $25,000 of net earnings from a tax preparation business that he runs during tax season. He also earned a salary of $95,000 from his full-time job. How much self-employment tax must he pay for 2013?
Self-employed tax:
Self-employed tax refers to the combination of social security tax liability and medicare tax liability that is to be paid by the small businesses or self-employed persons to the federal government of the US on the earned income during the financial year.
Answer and Explanation: 1
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View this answer{eq}\begin{align*} {\rm\text{Self - employed tax liability}} &= \left( {{\rm\text{Self - employed taxable income}} \times {\rm\text{Social security...
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Income Tax: Tax Liability & Deductions
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Chapter 3 / Lesson 5
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Learn what income tax liability is. Find out what taxable and adjusted gross income are, discover how to calculate tax liability, and examine common deductions.
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