Arlene is a college professor earning $90,000 and also has a sole proprietor consulting practice where she earned $28,000 for 2016.How much of her total earnings are subject to self-employment tax for 2016?

Question

Quizplus · Accepted Answer

The correct answer is A. The total earnings subject to self-employment tax are $25,858. This is calculated by taking the total earnings from the consulting practice ($28,000) and subtracting the amount of the deduction for one-half of self-employment tax ($2,142).

Arlene Is a College Professor Earning $90,000 and Also Has