jameson has the following sources of income: sole proprietorship income $40,000 general partnership operating income $5,000 inte

Question

1 year ago

9

rest income from general partnership $1,200 what is the amount of self-employment tax jameson owes? round your answer to the nearest dollar.

1 answer:

lakkis [162] · Answer 1 · 2024-02-06T07:21:39+03:00

The amount of self-employment tax that Jameson owes is $6358.

<h3>How to calculate the tax?</h3>

It should be noted that tax simply has to do with the levy that people and companies pay to the government.

Based in the information, the following can be deduced:

Sole proprietorship income = $40,000

General partnership operating income = $5,000

Interest income from general partnership = $1,200

Therefore, self employement income = 40,000 + 5,000

= 45,000

Net earnings from self employment = 45,000 - (7.65% × 45000)

= 41,557.5

Self employment tax = 41,557.5 * 15.30%

= 6,358

Therefore, the amount of self-employment tax that Jameson owes is $6358.

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