Ava has net earnings from self-employment of $125,000.She also earned salary of $170,000 from a job held earlier in the year.How much Additional Medicare Tax will be owed on the self-employment income?
A)$0
B)$769
C)$855
D)$3,625

Question

Quizplus · Accepted Answer

The Additional Medicare Tax is 0.9% on self-employment income over $250,000 for single filers. Ava's self-employment income is $125,000, so she will owe $125,000 x 0.009 = $1,125 in Additional Medicare Tax. However, she is only responsible for paying half of this tax, so she will owe $1,125 / 2 = $562.50.

Ava Has Net Earnings from Self-Employment of $125,000