If in 2016, a woman made $90,000 on the job, $30,000 from a consulting business she operated, and $10,000 in dividends on stock she owned, she would owe old-age Social Security taxes on

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Quizplus · Accepted Answer

Old-age Social Security taxes are owed on earned income, which includes wages from a job and income from self-employment, but not investment income. Therefore, the woman would owe Social Security taxes on the sum of her job income ($90,000) and her consulting business income ($30,000), totaling $120,000. However, there's a maximum amount of income subject to Social Security taxes, which for 2016 was $118,500. Therefore, she would owe Social Security taxes on $118,500, the maximum taxable amount for that year.

If in 2016, a Woman Made $90,000 on the Job