Alice is single and self-employed in 2021. Her net business profit on her Schedule C for the year is $196,000. What are her self-employment tax liability and additional Medicare tax liability for 2021?

Alice is single and self-employed in 2021. Her net business profit on her Schedule C for the year is $196,000. What are her self-employment tax liability and additional Medicare tax liability for 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Whitney received $75,000 of taxable income in 2020. All of the income was salary from her employer.…

A: INTRODUCTION: Taxable income is part of your total income that the IRS considers taxable. It…

Q: n 2021, Sheryl is claimed as a dependent on her parents' tax return. Her parents report taxable…

A: Kiddie tax is applicable when the taxpayer's age is less than 18 years old. Another condition is…

Q: In 2021, Sheri's only source of income for the year is a salary of $40,025. She is not married and…

A: In the given question, Sheri earned $40,025 as her only income in 2021. She is single and has three…

Q: Matthew earned $67,859 during 2020. How much will his employer withhold from him, in total, for FICA…

A: FICA tax: Federal government imposes taxes on the employee's pay to provide benefits to retired, old…

Q: In 2023, Miranda records net earnings from self - employment of $191,600. She has no other income.…

A: A self-employment tax is the tax which is paid by a taxpayer who is earning for his or her own which…

Q: Clem paid self employment tax of $24,300 (the employer portion is $12,150) and Wanda had “his wife”…

A: The thresholds for additional Medicare tax apply to both individual wages, benefits, and…

Q: Julie, being self-employed, is required to make estimated payments of her tax liability for the…

A: In case estimated tax of an individual is $1,000 or more than quarterly payment of tax should be…

Q: Lance, a single taxpayer, is a teaching assistant at Big State University and has W-2 income of…

A: SE termed as Self employment tax which is the tax imposed on SE individuals as well as small…

Q: Simon is single and a stockbroker for a large investment bank. During 2020, he has withheld from his…

A: Given information, withheld from his paycheck=$2,250 for state taxes and $400 for city taxes. Simon…

Q: 1. Jennifer is single and 45 years old in 2021. Jennifer's modified adjusted gross income is…

A: Traditional IRA contributions may be tax deductible. The Deduction may be limited if you or your…

Q: In 2021, Sven is single and has $138,000 of regular taxable income. He itemizes his deductions as…

A: The alternative minimum tax (AMT) applies to taxpayers who falls under high income by fixing a limit…

Q: Frieda has the following income items in 2023: Sole proprietorship income of $200,000 General…

A: Self-employment taxes include two types of taxes : Social Security Taxes & Medicare Taxes. For…

Q: Alice is single and self-employed in 2020. Her net business profit on her Schedule C for the year is…

A: The taxpayer's net business profit from Schedule C is multiplied with 92.35% to calculate the income…

Q: In 2021, Jasmine and Thomas, a married couple, had taxable income of $101,000. If they were to file…

A: To calculate the benefit or penalty we have to calculate the tax liability jointly and seprately.…

Q: Christine and Doug are married. In 2019, Christine earns a salary of $250,000 and Doug earns a…

A: Medicare tax is one of a part of payroll taxes in which a fixed medicare tax rate (1.45%) is…

Q: Casey works as an employee of ABC Inc. Casey earns wages of $100,000 in 2021. What is the amount of…

A: In United States, employment tax liability comes in the form of Federal Insurance Contributions Act…

Q: Henrich is a single taxpayer. In 2022, his taxable income is $482,500. What are his income tax and…

A: Taxable income refers to the sum value of money earned by a taxpayer that is subject to a compulsory…

Q: In 2021, Sheryl is claimed as a dependent on her parents' tax return. Her parents report taxable…

A: In this case 7000 $ is an unearned income,and it exceeded 2200 limit.

Q: Whitney received $75,000 of taxable income in 2020. All of the income was salary from her employer.…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: For each of the following situations, indicate whether the taxpayer(s) is (are) required to file a…

A: Monica received $ 500 as unreported tip and owes Social Security taxes on these tips. Total income…

Q: In 2022, Miranda records net earnings from self- employment of $158,500. She has no other gross…

A: Self-employed people and small company owners who do not otherwise pay withholding taxes are subject…

Q: Lacy is a single taxpayer. In 2021, her taxable income is $46,400. What is her tax liability in each…

A: Taxable Income $46,400 Less: Qualified Dividend ($9,400) Income Taxed at ordinary rates $37,000…

Q: Brian, a self-employed individual, pays state income tax payments of: $ 900 on January 15, 2020…

A: SOLUTION- DEDUCTION- IT IS THE INVESTMENT/EXPENDITURE THAT HELPS IN REDUCING THE TAX PAYABLE.

Q: Alice is single and self-employed in 2023. Her net business profit on her Schedule Ċ for the year is…

A: Self-Employment Tax (Social Security and Medicare):Social Security tax rate: 12.4%Medicare tax rate:…

Q: During the 2021 financial year, Kate (a resident taxpayer) received wages from her employment…

A: Since the income exceeds $18,200 , the income will be taxable. Employer withholds Pay as you go…

Q: An individual is salaried, is not operating a business, is divorced with one child living at home,…

A: To determine the tax liability of an individual, we need to consider the applicable tax rates and…

Q: In 2022, Miranda records net earnings from self- employment of $158,500. She has no other gross…

A: Self-employment income is money made by someone who works for themselves. This includes earnings…

Q: Jessica is single and has a 2021 taxable income of $203,300. She also received $15,000 of tax-exempt…

A: Marginal tax rate: It implies to the rate at which the tax is being paid by the taxpayer on his…

Q: What is her tax liability

A: Income includes salary, capital gain, earning from business or profession, and income from other…

Q: Taylor, age 18, is claimed as a dependent by her parents. For 2023, she has the following income:…

A: Taxable income refers to the portion of a person's or entity's income that is subject to taxation by…

Q: Shelley is a self-employed CPA. In 2020, she had gross revenue of $255,000 and expenses of $40,000…

A: Self employed individuals are required to pay both the employee and employer portion of social…

Q: Alice is single and

A: Self-employment tax is defined as the amount a proprietor is obliged to pay to the revenue…

Q: Susan, who is a qualifying widow, has a monthly gross income of $5,750.78 Calculate her net earnings…

Q: Allan has a gross income of P400,000 in 2020. His employer deducted P5,000 SSS, P4,000 PHIC, P3,000…

A: Answer: The final tax due is calculated on the net income of the person. The deductions is allowed…

Q: Determine Amy’s taxable income for 2019 if she has $40,000 of salary income, is single, and claims…

A: Amy' taxable income = Gross income- standard deduction Standard deduction allowed for single tax…

Q: Kathy is 48 years of age and self-employed. During 2019, she reported $100,000 of revenues and…

A: Solution: Maximum amount she can contribute to an individual 401(k) for 2019 = Employee contribution…

Q: Linda is a qualifying widow in 2021. In 2021, she reports $80,000 of taxable income (all ordinary).…

A: The amount of tax that a person or organization owes to the government in relation to their taxable…

Question

Alice is single and self-employed in 2021. Her net business profit on her Schedule C for the year is $196,000.

What are her self-employment tax liability and additional Medicare tax liability for 2021?

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

Similar questions

Corina is self-employed. In 2020, her net profit from self-employment was $200,000, and she has no other income. What is Corina's SE tax liability? Round your answer to the nearest whole dollar.
Sheniqua, a single taxpayer, had taxable income of $80, 628. Her employer withheld S 12,957 in federal income tax from her paychecks throughout the year. What is the amount of refund would Sheniqua receive or additional tax she would pay? Note: Input your answer as a positive number. Use the appropriate Tax Tables.
Paul is self-employed as a dentist. He practices under the name "Paul J. Vance, DDS." Paul's gross receipts during the year were $111,000. He uses the cash method of accounting. His business expenses are $68,890. Assume the QBI amount is net of the self-employment tax deduction. What is he qualified business income deduction for 2020?
Assume Edgar (age 45), a single taxpayer, has total itemized deductions of $19,252 for 2019, which includes 1. $10,000 of taxes (he paid $10,773 in state income taxes), and 2. qualified, deductible medical expenses. In 2020, Edgar receives a $414 refund of his 2019 state income taxes. How much of the refund must be included in his income for 2020? The standard deduction for 2019 for a single taxpayer was $12,200.
Lacy is a single taxpayer. In 2022, her taxable income is $44,200. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Required: All of her income is salary from her employer. Her $44,200 of taxable income includes $1,200 of qualified dividends. Her $44,200 of taxable income includes $5,200 of qualified dividends.
Kenneth owns Sheffield Company and has the following revenue and expenses. Calculate the after-tax net profit (ignoring self-employment tax) for Kenneth who is single in 2023. Taxable revenue received $117,000 Tax-exempt revenue received $15,000 Deductible expenses paid $23,000 Non- deductible expenses paid $5,000
Brooklyn files as a head of household for 2021. She claimed the standard deduction of $18,800 for regular tax purposes. Her regular taxable income was $93,750.What is Brooklyn's AMTI?
Helen is a single taxpayer with interest income in 2019 of $8750 is she required to file a tax return
Lacy is a single taxpayer. In 2020, her taxable income is $43,800. What is her tax liability in each of the following alternative situations? a.Her $43,800 of taxable income includes $2,800 of qualified dividends.? b Her $43,800 of taxable income includes $6,800 of qualified dividends.?
In 2021, Patricia (age 10) received $7,880 from a corporate bond. Patricia lives with her parents and she is claimed as a dependent in their tax return. Assuming her parent's marginal tax rate is 24%, what is Patricia's gross tax liability? 2021 Tax Rate Schedules.pdf O $0. $110. O $1473. O $999.
Sharon Jones is single. During 2022, she had gross income of $159,800, deductions for AGI of $5,500, itemized deductions of $14,000 and tax credits of $2,000. Sharon had $22,000 withheld by their employer for federal income tax. She has a tax (due/refund) rounded to the nearest whole dollar of $.
hr.4