Joanne Plummer is self-employed in 2019. Her Schedule C net income is $36,600 for the year, and Joanne also had a part-time job and earned $4,400 that was subject to FICA tax. Joanne received taxable dividends of $1,110 during the year, and she had a capital gain on the sale of stock of $9,100.Calculate Joanne's self-employment tax using page 1 of Schedule SE of Form 1040. OMB No. 1545-0074SCHEDULE SESelf-Employment Tax(Form 1040 or 1040-SR)2019• Go to www.irs.gov/ScheduleSE for instructions and the latest information.AttachmentDepartment of the TreasuryInternal Revenue Service (99)Attach to Form 1040, 1040-SR, or 1040-NR.Sequence No. 17Name of person with self-employment income (as shown on Form 1040,Social security number of person1040-SR, or 1040-NR)with self-employment incomeJoanne PlummerBefore you begin: To determine if you must file Schedule SE, see the instructions.May I Use Short Schedule SE or Must I Use Long Schedule SE?Note: Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE in the instructions.Did you receive wages or tips in 2019?NoYesAre you a minister, member of a religious order, orWas the total of your wages and tips subject to socialChristian Science practitioner who received IRSYessecurity or railroad retirement (tier 1) tax plus yourYesapproval not to be taxed on earnings from thesenet earnings from self-employment more thansources, but you owe self-employment tax on other$132,900?earnings? Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE.la Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box14, code A.....1ab If you received social security retirement or disability benefits, enter the amount of Conservation ReserveProgram payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code1b (АН ....2 Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other thanfarming). Ministers and members of religious orders, see instructions for types of income to report on thisline. See instructions for other income to report.2.3Combine lines la, 1b, and 2...4 Multiply line 3 by 92.35% (0.9235). If less than $400, you don't owe self-employment tax; don't file thisschedule unless you have an amount on line 1b4Note: If line 4 is less than $400 due to Conservation Reserve Program payments on line 1b, seeinstructions.5 Self-employment tax. If the amount on line 4 is:• $132,900 or less, multiply line 4 by 15.3% (0.153). Enter the result here and on Schedule 2 (Form1040 or 1040-SR), line 4, or Form 1040-NR, line 55• More than $132,900, multiply line 4 by 2.9% (0.029). Then, add $16,479.60 to the result.Enter the total here and on Schedule 2 (Form 1040 or 1040-SR), line 4, or Form 1040-NR, line 5556 Deduction for one-half of self-employment tax.Multiply line 5 by 50% (0.50). Enter the result here and on Schedule 1(Form 1040 or 1040-SR), line 14, or Form 1040-NR, line 27....6

Self-employment income: Income earned by an individual by working for his/her interest with the…

Joanne Plummer is self-employed in 2019. Her Schedule C net income is $36,600 for the year, and Joanne also had a part-time job and earned $4,400 that was subject to FICA tax. Joanne received taxable dividends of $1,110 during the year, and she had a capital gain on the sale of stock of $9,100. Calculate Joanne's self-employment tax using page 1 of Schedule SE of Form 1040.

Joanne Plummer is self-employed in 2019. Her Schedule C net income is $36,600 for the year, and Joanne also had a part-time job and earned $4,400 that was subject to FICA tax. Joanne received taxable dividends of $1,110 during the year, and she had a capital gain on the sale of stock of $9,100. Calculate Joanne's self-employment tax using page 1 of Schedule SE of Form 1040.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 9DQ: LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on...

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