Question

Peter Johnson had $120,000 taxable income. What amount is subject to the "continuing" Medicare tax? What is the percentage tax rate for this amount for a self employed person? What amount does this represent?

Answer 1

Answer:

Amount subject to the "continuing" Medicare tax: $102,000

Percentage tax rate for the amount for a self-employed person: 2.9%

This amount represents: $3,480

Step-by-step explanation:

Take income tax percentage rates:

$120,000*0.029 = $3,480