Calculate Ronald net investment income tax

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Problem -

A. Ronald Trunk is single and independently wealthy. In 2019, Ronald's investment income is $110,000 (all interest) and his adjusted gross income is $380,000. He has no investment expenses associated with this income, no foreign earnings exclusion, and lives where there is no state income tax. Complete Form 8960 to calculate Ronald's 2019 net investment income tax.

B. Meng and Eang Ung are married. Meng is self-employed and generates self-employment income of $130,000. Eang is a physician at a local hospital and earns Social Security (Box 5) wages of $265,000. Her Medicare withholding (Box 6) is $4,427.50. Eang and Meng have no other earned or unearned income. Complete Form 8959 on Page 6-31 to determine how much 0.9 percent additional Medicare tax on earned income Meng and Eang must pay with their joint tax return in 2019 and what 0.9 percent additional Medicare tax withholding will they report?

Reference no: EM132675836

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