John operates a sole-proprietorship business which reports $100,000 of self-employment income on Schedule of IRS Form 1040

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John operates a sole-proprietorship business which reports $100,000 of self-employment income on Schedule of IRS Form 1040 for 2021.

a. What amount of the $100,00 is subject to Self-employment Tax for 2021?

b. What is the Self-employment tax liability for 2021?

c. What amount is John entitled to deduct for AGI?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: May 17, 2023 02:22 AM

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John operates a sole-proprietorship business which reports $100,000 of self-employment income on Schedule of IRS Form 1040

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a For selfemployment tax purposes the amount subject to selfemployment tax is calculated based on the net selfemployment income This is determined by ... View the full answer

Income Tax Fundamentals 2013

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