Amelia has wages of $45,000 and net income from a small unincorporated business of $70,000 for 2015.

Question:

Amelia has wages of $45,000 and net income from a small unincorporated business of $70,000 for 2015.
a. What is the amount of Amelia’s self-employment (SE) tax and deduction for AGI for her SE tax?
b. How would your answer to Part a change if Amelia’s wages were $120,000 rather than $45,000?