Armond earned $10,000 of profit from a sole proprietorship in 2018. If he also has $140,000 of salary income, how much self-employment tax will he owe?

Name: Armond earned $10,000 of profit from a sole proprietorship in 2018. If he also has $140,000 of salary income, how much self-employment tax will he owe?
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Question

Quizplus · Accepted Answer

Because Armond's salary is above the 2018 social security base amount, he owes only the Medicare portion of the self-employment tax, equal to $268 = $10,000 × 92.35% × 2.9%.

Armond Earned $10,000 of Profit from a Sole Proprietorship in 2018