Allison and Jake formed a partnership. Erin has an income of 100,000 plus 51,377. Allison is single
Question:
Allison and Jake formed a partnership. Erin has an income of 100,000 plus 51,377. Allison is single and takes the
standard deduction. Allison has long term capital gains of 12,500 and interest income from Allison Bank of 900. Allison also received wages as an employee from a different company of 24,000. Allison has no other sources of income or deduction. Determine:
a. The amount of income considered to be earned from self-employment activities
b. The amount of self-employment income subject to social security taxation
c. The social security tax due related to the self-employment income activities
d. The amount of self-employment income subject to medicare taxation
e. The medicare tax due related to the self-employment income activities
Microeconomics
ISBN: 9781464146978
1st edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson