Question

John has 2 jobs in 2019. He earned the following:

                 

Job 1                  Job 2

Salary                                        80,000                60,000

Federal Withholding tax             15,000                10,000

Social Security                          4,960                3,720

Medicare                                   1,160                     870

1. If John’s 2019 federal income tax is calculated at $ 23,500, how much will John receive as a refund on his 2018 federal income tax return?

2. Assume John has Job 1, but instead of Job 2, he earned $ 60,000 as a self-employed Carpenter. Calculate John’s Self-employment tax.

Answer 1

For 2019
The refund amount is
a) already tax paid-tax laibility
(15000+10000)-23500	$1,500
Add: Overcap on social security liability
((80000+60000)-132900)*6.2%	440.2
The refund amount is	$1,940.2
If 2018 is taken as both years mentioned in question
a) already tax paid-tax laibility
(15000+10000)-23500	$1,500
Add: Overcap on social security liability
((80000+60000)-128400)*6.2%	719.2
The refund amount is	$2,219.2
ans 2
For 2019
Social security already paid on $80000 remaining
(132900-80000)=	$52,900
Self employment income on which social secuirty needs
to be paid
60000*92.35%	55410
Social security on lesser of $52900 or 55410
52900*12.4%	6559.6
medicare taxes 55410*2.9%	1606.89
Self employment tax	8166.49
for 2018
Social security already paid on $80000 remaining
(128400-80000)=	$48,400
Self employment income on which social secuirty needs
to be paid
60000*92.35%	55410
Social security on lesser of $52900 or 55410
48400*12.4%	6001.6
medicare taxes 55410*2.9%	1606.89
Self employment tax	7608.49
If any doubt please comment