R1 M3 Gross Income Part II Flashcards
1
Q
What would be the total amount of self employment income?
A
Net profit of $200,000 from business
2
Q
Is interest income a part of net profit form the business when it comes to self-employment tax?
A
No.
3
Q
What is the self-employment tax rate?
A
Social security —> 12.4%. + Medicare 2.9% = 15.3%
If employed: 7.65% EE + 7.65% ER
4
Q
How do you calculate what net earning from self-employment ?
A
92.35% * 200,000=
Schedule SE
5
Q
How do you calculate self employment tax?
A
Net earning from self employment tax X 15.3%
6
Q
ADJUSTMENT FOR SELF EMPLOYMENT TAX PAID?
A
Is half the self-employment tax
