Martin, a single individual, has a sole proprietorship business. For 2016, Martin's net income from this activity was $340,000.

a. Given a FICA earnings limit of $118,500 for 2016, calculate and identify all of the payroll taxes Martin is subject to for 2016.b. Which taxes in (a), if any, may Martin deduct on his individual income tax return?
c. How would your answer to (a) change if Martin were instead an employee/owner of a C corporation with a salary of $340,000.

Question

​ Martin, a single individual, has a sole proprietorship business. For 2016, Martin's net income from this activity was $340,000.
​
a. Given a FICA earnings limit of $118,500 for 2016, calculate and identify all of the payroll taxes Martin is subject to for 2016.​​b. Which taxes in (a), if any, may Martin deduct on his individual income tax return?​​
c. How would your answer to (a) change if Martin were instead an employee/owner of a C corporation with a salary of $340,000.​

Quizplus · Accepted Answer

The Answer of ​ Martin, a single individual, has a sole proprietorship business. For 2016, Martin's net income from this activity was $340,000.
​
a. Given a FICA earnings limit of $118,500 for 2016, calculate and identify all of the payroll taxes Martin is subject to for 2016.​​b. Which taxes in (a), if any, may Martin deduct on his individual income tax return?​​
c. How would your answer to (a) change if Martin were instead an employee/owner of a C corporation with a salary of $340,000.​

​ Martin, a Single Individual, Has a Sole Proprietorship Business

Martin, a Single Individual, Has a Sole Proprietorship Business