A self-employed individual has earnings from his business of $300,000 in 2017.For the earnings in excess of $127,200,he will only have to pay the 2.9% Medicare Tax.

Question

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Because his earned income exceeds $200,000 ($250,000 if married filing a joint return),earned income in excess of the threshold will also be subject to the .9% Additional Medicare Tax.

A Self-Employed Individual Has Earnings from His Business of $300,000