Anita, a single taxpayer, reports the following items for 2018: Salary ................................................................................................................................... $20,000 Income for serving on

Question:

Anita, a single taxpayer, reports the following items for 2018:

Salary ................................................................................................................................... $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 $140,000?

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...

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