JC recently graduated from veterinary school and opened her own professional practice. Assume JC does not...

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JC recently graduated from veterinary school and opened her own professional practice. Assume JC does not qualify for the QBl

Required A Required B What percentage of the federal tax burden on JCs business income is represented by the self-employment

business accounting

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Answer 1

Answer #1

Part-A

Computatio of After Tax Income
Before-tax income	27,900
Self-employment tax	-3,942
Income tax	-5,704
After-tax income	18,254

Working Note
Computation of Income Tax
Net profit	27,900
One-half self-employment tax (3942/2)	-1,971
Taxable income from practice	25,929
Tax rate	22%
*Income tax (2592922%)**	5,704

Part-b

Computation of Self Employment Tax Rate

Self Employmnt Tax/ Total Tax

=3942/(3942+5704)=40.867%

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Answer 2

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