Joan earns $118,700 in her job as a physician's assistant.She also has her own business selling cosmetics.This business generated $10,000 of earnings.What is Joan's self-employment tax for 2017?

Question

Quizplus · Accepted Answer

B)10,000 × .9235 = 9,235 × .029 = $268 Medicare tax
(127,200 - 118,700)× .124 = 1,054 Social Security tax
$1,322
OASDI does not apply to the full self-employment income because she has already been taxed on the $118,700 from her job.

Joan Earns $118,700 in Her Job as a Physician's Assistant