Josue had the following income expenses, gains and losses for 2019: salaries received from big business,...
Josue had the following income expenses, gains and losses for 2019:
salaries received from big business, inc. $115,600
net business income from small business 49,500
net rental income from single family home 21,600
interest income 5,222
qualified dividend income 3,123
gain from sale of Alphabet common stock 12,200
How much is Josue's self-employment tax? show your work
How much is Josue's section 199A QBI deduction? show your work
Homework Answers
Dear Student,
If you any doubts, feel free to ask
Part 1
|
Josue's self-employment tax |
$3471 |
Self-employment income for self-employment tax = 49500*92.35% = 45713
Social Security wage limit is $132900 for 2019
The $17300 of $45713 will be subject to self-employment tax for OASDI and the total $45713 will be subject to self-employment tax for HI. No additional 0.9% medicare tax is charged as the total income of $161313 (115600+45713) subject to social security tax
|
Self-employment tax for OASDI (17300*12.4%) |
2145 |
|
self-employment tax for HI (45713*2.9% |
1326 |
|
Total self-employment tax |
$3471 |
Part 2
|
Josue's section 199A QBI deduction |
$9553 |
Josue's section 199A QBI deduction = (net income – (50%*self-employment tax))*20%
= (49500-(50%*3471))*20% = $9553
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