Alton reported net income from his sole proprietorship of $90,000. To determine his self-employment tax, he would multiply $90,000 by the self-employment tax rate.

Question

Quizplus · Accepted Answer

To determine self-employment tax, Alton must first calculate his net earnings from self-employment, which is 92.35% of his net income, and then multiply that amount by the self-employment tax rate.

Alton Reported Net Income from His Sole Proprietorship of $90,000