Pat generated self-employment income in 2015 of $76,000.The self-employment tax is:

Question

Quizplus · Accepted Answer

The self-employment tax rate for 2015 is 15.3%. To calculate the self-employment tax, we need to multiply Pat's self-employment income by the tax rate, which gives us $11,628. However, self-employed individuals can deduct half of their self-employment tax as an adjustment to income, which reduces the final tax liability to $10,738.46. Therefore, the correct answer is option C.

Pat Generated Self-Employment Income in 2015 of $76,000