Alice is single and self-employed in 2022. Her net business profit on her Schedule C for the year is $166,000.What are her self-employment tax liability and additional Medicare tax liability for 2022?

Self-employment tax is required to be paid by small businesses to support social security as well as…

Answered: Alice is single and self-employed in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Suppose that Ana is preparing to file her taxes. She is single and currently lives in Denver. Ana earned $110,000 in taxable income in 2022. She reviews the following table, which shows the IRS tax rates for a single taxpayer in 2022. On Annual Taxable Income... Up to $10,275 From $10,275 to $41,775 From $41,775 to $89,075 From $89,075 to $170,050 From $170,050 to $215,950 From $215,950 to $539,900 Over $539,900 The Tax Rate Is... (Percent) 10.0 12.0 Ana calculates that she owes 22.0 24.0 32.0 35.0 37.0 Based on the IRS table, Ana calculates that her marginal tax rate is in income taxes for 2022. when her annual taxable income is $110,000. Ana then calculates that her average tax rate is, based on the annual income level and the amount of taxes she owes for 2022. After figuring out what she owes in taxes in 2022, Ana decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $2,000 of taxable income from the federal government. The…
Henry files as a single taxpayer. In 2020 his taxable income was $95,525. Using the tax rate schedule in Chapter 3, what is his tax liability for the year? (Be sure to use the 2020 rates. If you don't have the textbook, find the 2020 "tax rate schedule" for single taxpayers online)
In 2023, Sheryl is claimed as a dependent on her parents' tax return. Her parents report taxable income of $600,000 (married filing jointly). Sheryl did not provide more than half her own support. What is Sheryl's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. c. She received $7,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 20 years old at year-end and is a full-time student. What is her tax liabilty?
Lacy is a single taxpayer. In 2022, her taxable income is $44,200. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Required: All of her income is salary from her employer. Her $44,200 of taxable income includes $1,200 of qualified dividends. Her $44,200 of taxable income includes $5,200 of qualified dividends.
Kenneth owns Sheffield Company and has the following revenue and expenses. Calculate the after-tax net profit (ignoring self-employment tax) for Kenneth who is single in 2023. Taxable revenue received $117,000 Tax-exempt revenue received $15,000 Deductible expenses paid $23,000 Non- deductible expenses paid $5,000
In 2021, Lisa and Fred, a married couple, had taxable income of $305,200. If they were to file separate tax returns, Lisa would have reported taxable income of $126,700 and Fred would have reported taxable income of $178,500. Use Tax Rate Schedule for reference. What is the couple’s marriage penalty or benefit?
Joey is carrying on a retail business as a sole proprietor. His taxable income for the 2020-21 income year is $115,000. Which of the following calculations will be performed to determine his income tax liability? Disregard the medicare levy and any tax offsets that may apply. O $5,092 + ($115,000 - $45,000) x 0.325 O $29,467 + ($115,000 - $45,000) x 0.325 O $115,000 x 0.325 O $29,467 + ($115,000 - $45,000) x 0.37
In 2021, Patricia (age 10) received $7,880 from a corporate bond. Patricia lives with her parents and she is claimed as a dependent in their tax return. Assuming her parent's marginal tax rate is 24%, what is Patricia's gross tax liability? 2021 Tax Rate Schedules.pdf O $0. $110. O $1473. O $999.
H
During the year ended 30 June 2021 Preti, a resident taxpayer, received salary and wages income of $86,000 and a franked dividend of $4,800 with $1,200 of attached franking credits. She also has $5,000 of deductible work-related expenses. Her employer deducted PAYG instalments of $14,250. She has no dependents. Required: Explain how her net tax to pay or refund will be calculated. (ignore Medicare Levy)
Sharon Jones is single. During 2022, she had gross income of $159,800, deductions for AGI of $5,500, itemized deductions of $14,000 and tax credits of $2,000. Sharon had $22,000 withheld by their employer for federal income tax. She has a tax (due/refund) rounded to the nearest whole dollar of $.
Terry and Jennifer, both in their 30s, file a joint income tax return for 2020. Terry’s wages are $26,000 and Jennifer’s wages are $34,000 for the year. Their total adjusted gross income is $60,000, and Joan is covered by a qualified pension plan at work but Terry is not. a. What is the maximum amount that Terry and Jennifer may each deduct for contributions to their traditional individual retirement accounts in 2020? b. If Jennifer's wages are $85,000 for 2020, instead of $34,000, and their adjusted gross income is $111,000, what is the maximum amount that Terry and Jennifer may each deduct for contributions to their traditional individual retirement accounts?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Alice is single and self-employed in 2022. Her net business profit on her Schedule C for the year is $166,000. What are her self-employment tax liability and additional Medicare tax liability for 2022?