Gina is a single taxpayer and an active partner in the GMA LLC.Gina's Schedule K-1 reflects a $20,000 ordinary income share,$2,000 of interest income,and a $10,000 guaranteed payment for services.Gina's self-employment income from other sources and modified adjusted gross income is about $300,000.With respect to the income from the LLC,Gina will be subject to the 0.9% additional Medicare tax on $30,000 and the 3.8% net investment income tax of $2,000.

Question

​Gina is a single taxpayer and an active partner in the GMA LLC.Gina's Schedule K-1 reflects a $20,000 ordinary income share,$2,000 of interest income,and a $10,000 guaranteed payment for services.Gina's self-employment income from other sources and modified adjusted gross income is about $300,000.With respect to the income from the LLC,Gina will be subject to the 0.9% additional Medicare tax on $30,000 and the 3.8% net investment income tax of $2,000.

Quizplus · Accepted Answer

As an active partner in the LLC, Gina's ordinary income share, guaranteed payment, and interest income are all subject to self-employment tax. This includes the additional Medicare tax of 0.9% on the combined total of $30,000 and the net investment income tax of 3.8% on her $2,000 interest income. Therefore, the statement is true.

​Gina Is a Single Taxpayer and an Active Partner in the GMA

Gina Is a Single Taxpayer and an Active Partner in the GMA