The amount of overpayment of fica taxes

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1a. Jan has two jobs during 2016. One employer withheld and paid Social Security taxes on $70,000 of Jan’s salary, and the other employer withheld and paid Social Security taxes on $49,500 in salary paid to Jan. Calculate the amount of Jan’s overpayment of FICA taxes that she could claim on her Form 1040.

1b. Stewart Beauf is a self-employed surfboard maker in 2016. His Schedule C net income is $115,000 for the year. He also has a part time job and earns $9,100 in wages subject to FICA taxes. Calculate Stewart’s self-employment tax for 2016 using Schedule SE. Please complete and upload schedule SE or write here the amount per line you would find on the schedule.

1c. Debbie and Alan open a web-based bookstore together. They have been friends for so long that they start their business on a handshake after discussing how they will share both work and profits or losses from the business. Have Debbie and Alan formed a real partnership given that they have signed no written partnership agreement?

Reference no: EM131450908

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