The self-employment tax for a sole proprietor who reports $154,800 of self-employment profits on Schedule C and has no wages is:
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$4,146 |
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$21,873 |
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$23,684 |
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$20,068 |
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$7,420 |
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$7,763 |
Answer is option C
c. $20,068
Net earnings from self-employment = $154,800 x 92.35% = $142,958
Self-employment tax = (128400*12.4%)+(142958*2.9%) = 15922+4146 = $20068
The self-employment tax for a sole proprietor who reports $154,800 of self-employment profits on Schedule C...
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