Calculate the applicable self-employment tax

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

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

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.

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: EM132772544

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