Calculate the applicable self-employment tax

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Problem 1: For each of the following individuals, calculate the applicable self-employment tax. Assume that each individual files tax returns under Married Filing Jointly status.

For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1: Annabelle Jefferson earns net self-employment income of $68,400. She does not work a second job.

2: Alexander Ryan earns net self-employment income of $116,900. He works a second job from which he receives FICA taxable earnings of $46,600.

3: Morgan Cruise earns net self-employment income of $220,500. She works a second job from which she receives FICA taxable earnings of $110,600.00.

Reference no: EM132691064

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