Item$2$

$10$points

Time Remaining $3$ hours $20$ minutes $17$ seconds

$03$:$20$:$17$

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Item $2$

Time Remaining $3$ hours $20$ minutes $17$ seconds

$03$:$20$:$17$

JC recently graduated from veterinary school and opened their own professional practice. This year, their net profit was $$26,000.$ Assume JC does not qualify for the QBI deduction.

Required:

Compute JC$$s after$-$tax income from their practice assuming their self$-$employment tax is $$3,674,$ and their marginal income tax rate is $22$ percent.

What percentage of the federal tax burden on JC$$s business income is represented by the self$-$employment tax?