JC recently graduated from veterinary school and opened their own professional practice. This year, their net profit was $22,300. Assume JC does not qualify for the QBI deduction. Required: a. Compute JC's after-tax income from their practice assuming their self-employment tax is $3,151, and their marginal income tax is 22 percent. b. What percentage of the federal tax burden on JC's business income is represented by the self-employment tax? Complete this question by entering your answers in the tabs below. Required A Required B What percentage of the federal tax burden on JC's business income is represented by the self-employment tax? Note: Round your answer to the nearest whole percent.

JC recently graduated from veterinary school and opened their own professional practice. This year, their net profit was $22,300. Assume JC does not qualify for the QBI deduction. Required: a. Compute JC's after-tax income from their practice assuming their self-employment tax is $3,151, and their marginal income tax is 22 percent. b. What percentage of the federal tax burden on JC's business income is represented by the self-employment tax? Complete this question by entering your answers in the tabs below. Required A Required B What percentage of the federal tax burden on JC's business income is represented by the self-employment tax? Note: Round your answer to the nearest whole percent.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 40P

See similar textbooks

Similar questions

Eagle Life Insurance Company pays its employees 0.30 per mile for driving their personal automobiles to and from work. The company reimburses each employee who rides the bus 100 a month for the cost of a pass. Tom collected 100 for his automobile mileage, and Mason received 100 as reimbursement for the cost of a bus pass. a. What are the effects of the above on Toms and Masons gross income? b. Assume that Tom and Mason are in the 24% marginal tax bracket and the actual before-tax cost for Tom to drive to and from work is 0.30 per mile. What are Toms and Masons after-tax costs of commuting to and from work?
Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax liability before credits is 190,000, and her TMT is 150,000. a. What is Lisas AMT? b. What is Lisas regular income tax liability after credits?
JC recently graduated from veterinary school and opened her own professional practice. Assume JC does not qualify for the QBI deduction. This year, her net profit was $27,900. a. Compute JC's after-tax income from her practice assuming her self-employment tax is $3,942, and her marginal income tax rate is 22 percent. b. What percentage of the federal tax burden on JC's business income is represented by the self-employment tax? Complete this question by entering your answers in the tabs below. Required A Required B Compute JC's after-tax income from her practice assuming her self-employment tax is $3,942, and her marginal income tax rate is 22 percent. (Round your intermediate calculations to the nearest whole dollar amount.) After-tax income
1. For computing the OASDI taxes, the maximum self-employment earnings of any individual is $200,000. a. True b. False 2. If the self-employed individual is also an employee of another company, the wages received can reduce the amount of self-employment income that is taxed. a. True b. False 3. Ramsey Smith receives wages amounting to $93,500. His net earnings from self-employment amount to $68,600. Smith must count determining taxable self-employment income for OASDI taxes. a. $68,600 b. $147,000 c. $53,500 d. $93,500 of his earnings in
Mr. Sia is working as a freelance professional in SDN Corporation. He is earning professional fees amounting to Php60,000.00 per month and is a Non-VAT registered. a. During the filing of his First Quarter Income Tax Return, which method of computing income tax is more advantageous? Justify your answer. b. During the filing of his Annual Income Tax Return, which method of computing income tax is more advantageous? Justify your answer.
Bluedragon is engaged in the following business activities for the year 2021: buying and selling of computer of computer parts with gross sales of P1,500,000 and as a freelance graphic artist with gross receipts of P1,000,000. Assuming the taxpayer opted for the income tax of 8% for self-employed individuals, how much is the percentage tax? *
For each of the following individuals, calculate the applicable self-employment tax. Assume that each individual files tax returns under Single status. NO TE: For simplicity, all clculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1: Allison Wilson earns net self-employment income of $74,200. She does not work a second job. Seif-Employment tax = $_ 2: Martin Hughes earns net self-employment income of $152,000. He works a second job from which he receives FICA taxable earnings of $105,100. Self-Employment tax = $_ 3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of $83,000. Self-Employment tax = $
A purely self-employed individual’s gross sales/receipts and other non-operating income do not exceed the VAT threshold. If he failed to signify his intention to avail of the 8% income tax rate on his first quarter return, he will pay: Group of answer choices Income tax on based on graduated income tax rates only. Income tax on gross sales/receipts excluding non-operating income in excess of P250,000 in lieu of graduated tax rates and percentage tax under Section 116. Income tax based on graduated income tax rates and percentage tax under Section 116 if not-Vat registered. Percentage tax under Section 116 only in lieu of income tax.
For the following taxpayers, indicate whether the taxpayer should file a tax return and why. a. Robert earned $50,000 this year as a staff accountant. His estimated tax liability is $4,500, and he expects to receive a $500 tax refund. b. Amy earned $4,000 this year working part-time. She will have no federal tax liability and has not made any federal tax payments. c. Ty earned $2,500 this summer and had $200 of federal taxes withheld from his paycheck. He will have no federal tax liability this year. d. Startup Corporation had a $50,000 loss this year. e. The Walker Family Trust earned $500 of gross income this year.
What is the amount of self-employment tax that would be paid by Andy for the year assuming he earned $128,100 while working as an employee of the University and another S20,000 from a sales business he owns? Select one: a. S1,190.40 b. S1,726.03 C. $535.63 d. $2,825.91 e. None of these
Subject :- Accounting Required information [The following information applies to the questions displayed below.] Nicole's employer, Poe Corporation, provides her with an automobile allowance of $24,000 every other year. Her marginal tax rate is 32 percent. Answer the following questions relating to this fringe benefit. b. What is Poe's after-tax cost of providing the auto allowance? X Answer is complete but not entirely correct. wrong answers - $16,320 - $15,600 - $7,320
The Diamond Corporation has two employees, Emily and Mary. Assume Diamond does not defer payroll tax payments or claim employee retention credits or sick and family leave credits. a. If Emily earns wages of $26,000 for 2020, calculate the total amount of the FICA tax that must be paid: by Emily by Diamond Corporation Total b. If Mary earns wages of $164,000 for 2020, calculate the total amount of the FICA tax that must be paid: by Mary by Diamond Corporation Total