Pat generated self-employment income in 2010 of $70,000.The self-employment tax is:

Name: Pat generated self-employment income in 2010 of $70,000.The self-employment tax is:
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Quizplus · Accepted Answer

The self-employment tax rate in 2010 was 15.3%. The Social Security portion (12.4%) applies to the first $106,800, and the Medicare portion (2.9%) applies to all income. For $70,000, the tax is $70,000 * 15.3% = $10,710. However, only 92.35% of self-employment income is subject to the tax, so $70,000 * 92.35% * 15.3% = $9,890.69.

Pat Generated Self-Employment Income in 2010 of $70,000