Question

3: Morgan Cruise earns net self-employment income of $221,600. She works a second job from which she receives FICA taxable earnings of $111,300.00.
Self-Employment tax =
137,700 cap

Answer 1

Based on the amounts that Morgan Cruise is getting paid, her self-employment tax will be $22,916.63.

How much does Morgan pay in self-employment tax?

taxable earnings from self-employment:

= 92.35% x 221,600

= $204,647.60

Self-employment tax is:

= (12.4% x 137,700 limit) + (2.9% x 200,000 limit) + (0.9% x (204,647.60 - 200,000)

= 17,074.80 + 5,800 + 41.83

= $22,916.63

Find out more on self-employment tax at brainly.com/question/8029273.

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