Richard Norton is required to pay a self-employment tax based on the net profits of his...

 

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Richard Norton is required to pay a self-employment tax based on the net profits of his farm business. For purposes of this tab (Self- Employment Tax), assume that Richard had a net profit of $123,000 from the farm business for Year 3 and $10,000 of Section 1231 gain. Complete Section A of the Form 1040, Schedule SE, for Year 3 below by entering the appropriate values in the designated cells. Round answers to the dollar. If the value of a cell is zero or if the cell should be left blank, you must enter a zero (0) to receive credit for your answer. 2021 Form 1040 Schedule SE Section A item (description) 1. Net farm profit/loss (Line 1a) 2. Net profit/loss [Sch C] (Line 2) 3. Combined net profit from self- employment (Line 3) 4. Net earnings from self- employment (Line 4) 5. Self-employment tax (Line 5) 6. AGI adjustment deduction for SE tax (Line 6) Amount $123,000.00 $113,590.00 $113,590.00 123 123 123 123 123 Richard Norton is required to pay a self-employment tax based on the net profits of his farm business. For purposes of this tab (Self- Employment Tax), assume that Richard had a net profit of $123,000 from the farm business for Year 3 and $10,000 of Section 1231 gain. Complete Section A of the Form 1040, Schedule SE, for Year 3 below by entering the appropriate values in the designated cells. Round answers to the dollar. If the value of a cell is zero or if the cell should be left blank, you must enter a zero (0) to receive credit for your answer. 2021 Form 1040 Schedule SE Section A item (description) 1. Net farm profit/loss (Line 1a) 2. Net profit/loss [Sch C] (Line 2) 3. Combined net profit from self- employment (Line 3) 4. Net earnings from self- employment (Line 4) 5. Self-employment tax (Line 5) 6. AGI adjustment deduction for SE tax (Line 6) Amount $123,000.00 $113,590.00 $113,590.00 123 123 123 123 123

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2021 Form itern description 1 Net farm profit loRs Line 1... View the full answer