Marge, who is married, operates Shapes: A Gym for Women. Assume Marge runs Shapes as a sole proprietorship. The business generated gross income for tax purposes of $564,000 and had valid, deductible business expenses of $370,000 in 2020. What is Marge’s 2020 self-employment tax liability? Same facts as Part A. What is Marge’s 2020 federal income tax deduction for self-employment tax? Assume that, instead of running Shapes as a sole proprietorship, Marge is an employee of the Shapes Company. (Marge does not own any part of the Shapes Company; she is simply an employee of the company.) $200,000 is her salary for 2020. How much should the Shapes Company have withheld from her pay, in total, for FICA taxes?

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Gross Income 564000 Deductible Bu... View the full answer