Marker Solutions is a security consulting company (considered a specialized service trade or business for Sec. 199a purposes) that reports the following in 2019:

Gross Consulting Fees Collected	$424,850
Expenses:
Office Rent:	$84,000
Supplies:	$19,121
Salaries to non-owner Employees (3 @ $60,000 each)	$180,000
Other ordinary business expenses:	26,413
Reasonable compensation to owner (Judy Marker)	$30,000
Additional cash withdrawals by Judy Marker	$12,000

 

The employer portion of FICA taxes on wages paid was 7.65%. In addition, Federal and State Unemployment taxes were assessed and paid by Marker Solutions at a rate of 6% on the first $7,000 of earnings per employee. Judy Marker is 100% owner of Marker Solutions. She is married to Jay Marker, who earns a $40,000 salary (with $4,000 withheld for federal income tax purposes), as a W2 employee of a local grocery store. Judy and Jay take the standard deduction when filing their personal taxes. Judy made estimated federal tax payments totaling $16,000 during 2019.

Assuming that Marker Solutions is operated as a sole proprietorship, compute the following:

1. Self-employment income   

2. Self-employment tax liability 

3. Judy and Jay Marker’s federal taxable income 

4. Judy and Jay Marker’s federal tax payment due (or overpayment to be refunded) with their MFJ 2019 income tax return