Stew Beauf is a self-employed surfboard-maker in 2019. His Schedule C net income is $144,400 for the year. He also has a part-time job and earns $8,664 in wages subject to FICA taxes. Calculate Stew's self-employment tax for 2019 using Schedule SE.

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Business

Jamie

7 September, 20:59

Stew Beauf is a self-employed surfboard-maker in 2019. His Schedule C net income is $144,400 for the year. He also has a part-time job and earns $8,664 in wages subject to FICA taxes. Calculate Stew's self-employment tax for 2019 using Schedule SE.

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Alexander Mata · Answer 1

Calculate the self-employment tax for 2019 as follows:

Schedule C net income = $144,400

Less: Self-employment adjustment ($144,400 x 7.65%) = $11,046.6

Taxable self-employment earnings = $133,353.40

Self-employment tax rate = 15.30%

Total self-employment tax = $20,403.10

Therefore: the total self-employment tax is $20,403.10