Self-Employment Tax
Response to the following problem:
Determine the self-employment tax that would be paid for 2014 by each of the following taxpayers. If there is no self-employment tax, explain why
a. Net business profit, $39,000; dividend income, $300; wages subject to social security, $5,000; gross rental income, $6,000; net rental income, $1,500.
b. Net business profit, $29,000; dividend income, $500; wages subject to social security, $60,000.
c. Net business profit, $70,000; dividend income, $200.
d. Net business profit, $15,000; dividend income, $100; wages subject to social security, $113,000.