Alton reported net income from his sole proprietorship of $90,000. To determine his self-employment tax, he would multiply $90,000 by the self-employment tax rate.

Name: Alton reported net income from his sole proprietorship of $90,000. To determine his self-employment tax, he would multiply $90,000 by the self-employment tax rate.
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Alton must first calculate his net earnings from self-employment, which is 92.35% of his net income, before applying the self-employment tax rate.

Alton Reported Net Income from His Sole Proprietorship of $90,000