Anita, a single taxpayer, reports the following items for 2014: Salary (subject to withholding) ...................................................... $20,000 Income

Question:

Anita, a single taxpayer, reports the following items for 2014:

Salary (subject to withholding) ...................................................... $20,000

Income for serving on the Board of Directors for XYZ Corporation ............ 11,000

Consulting gross income ................................................................ 9,000

Expenses related to consulting practice ........................................... (15,000)

a. What is the amount of Anita's self-employment tax?

b. How would your answer to Part a change if Anita's salary were $120,000?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...