Lee Sutherlin is a self-employed electrical consultant. He estimates his annual net earnings at $31,900. How much Social Security and Medicare must he pay this year? (a) Social Security- (b) Medicare-

Lee Sutherlin is a self-employed electrical consultant. He estimates his annual net earnings at $31,900. How much Social Security and Medicare must he pay this year? (a) Social Security- (b) Medicare-

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter1: The Individual Income Tax Return

Section: Chapter Questions

Problem 12P

See similar textbooks

Related questions

Q: If Austin is self-employed and makes $5,100.00 semimonthly, compute her total social security and…

A: Introduction: A tax is a mandatory fee or financial charge levied by the government on an individual…

Q: Jon, age 45, had adjusted gross income of $26,000 in 2019. During the year, he incurred and paid the…

A: Deduction Limit=10%×Adjusted gross income=10%×$26,000=$2,600

Q: 18.Lee Sutherlin is a self-employed electrical consultant. He estimates his annual net earnings at…

A: Social security tax and Medicare taxes are to be paid by both by employer and employee and if self…

Q: Julie paid $3,300 to the day care center and her AGI is $401,200. What amount of child and…

A: Dependent and Child care credit requires cares for a dependent child or disabled dependent. Credit…

Q: Jordan earns $55,945 per year and is paid semi-monthly how much would jordan pay for Medicare tax?

A: Tax refers to the amount charged by the government on the earnings earned by the individual or…

Q: Compute the additional Medicare tax for the following taxpayers. If required, round your answers to…

A: Medicare tax is a tax that is deducted from the paybacks of people to cover medicare expenses.…

Q: The Tucker family has health insurance coverage that pays 65 percent of out-of-hospital expenses…

A: T lives in the United States with his family. He has purchased family health insurance.…

Q: If you earned $130,000 this year, you would pay more OASDI and Medicare than your partner who earned…

Q: Mary is a 47-year old corporate attorney. She earns $225,000 per year and receives group term life…

A: Income from the benefits which has been got by the employee from the employer requires to be…

Q: Richard Gaziano is a manager for Health Care, Inc. Health Care deducts Social Security, Medicare,…

A: Solution- social security tax=$1000*0.62=62$ medicare tax=$1450*.0145=21.025$. calculating from his…

Q: What will be the total deduction for social security and Medicare taxes on Rony's next semimonthly…

A: Payroll tax: This is the tax which is withheld by an employer from the pay of the employee and…

Q: Leroy s employer has offered him the following employment package at Providence Hospital.…

A: Gross Income:-It refers to the total income earned by an individual before paying any taxes and…

Q: Dotty, age 40, incurred and paid for the following items this year: Doctor visits for allergy…

A: As per IRS, expenses paid during the year less reimbursed portion by employer or insurance company…

Q: In 2013, workers earned one credit towards Social Security for every $1,160 in earnings, up to a…

A: The answer is given in the below step.

Q: Reggie, who is 55, had AGI of $32,400 in 2020. During the year, he paid the following medical…

A: Since marijuana cannot be legally procured as per federal statute, the cost to procure is not…

Q: Lukas Douglas' filing status is married filing separately, and he has earned gross pay of $2,100.…

A: Earned gross pay = $2100 Contribution = 11% x 2100 = $231 Flexible pay spending = $80 Gross pay…

Q: Lee Sutherlin is a self-employed electrical consultant. He estimates his annual net earnings at…

A: The question is based on the concept of social security security tax withholding on wage and…

Q: Compute Austin's total social security and Medicare taxes for the fourth quarter, if she is…

A: For the fourth quarter, Number of semi months = 6 Total earnings = $5100×6=$30600 Social security…

Q: Ashley has an individual medical expense insurance policy with a $1,000 calendar year deductible and…

A: A medical insurance is a health cover for expenses incurred by a person during medical emergency.

Q: Matilda works for a company with 1,000 employees. The company has a hospitalization insurance plan…

A: (1) Employee must pay the first $3,000 of their Medical Expenses. (2) Matilda's Employer has…

Q: Zebulon is single, earned $2,655 last week, and had year-to-date earnings of $141,344. Use the 2021…

A: The Social Security tax rate for both employees and employers is 6.2% of employee compensation (for…

Q: Ann earns $95,000 per year in salary. She pays 25% federal income tax, 6% state income tax, 6.2%…

A: The question is based on the calculation of gross monthly income and net monthly income . Net income…

Q: The Baulding family has a basic health insurance plan that pays 80 percent of out-of-hospital…

A: The family has a fixed deductible plan, that is a plan in which each family member might be…

Q: Dustin Ambrose is married and claims 3 allowances. His gross weekly pay is $628.00. Each week he…

A: Net Pay: Net Amount receivable after all the deductions.

Q: Valentino is a patient in a nursing home for 51 days of 2021. While in the nursing home, he incurs…

A: Gross income of the individual means income without taking any deductions and exemptions.

Q: Sammy's employer pays for 40% of her annual health insurance premium of $5,150,00, Sammy pays the…

A: Annual health insurance premium= 5,150 Premium paid by employer = 5,150 x 40% = 2,060 Premium to be…

Q: Dustin Ambrose is married and claims 3 allowances. His gross weekly pay is $628.00. Each week he…

A: There are 2 methods for calculating the federal tax withholding:- Wage bracket method or Percentage…

Q: Lee Sutherlin is a self-employed electrical consultant. He estimates his annual net earnings at…

A: The social security tax rate is 6.2% per year multiplied by 2. The withholding social security…

Q: If his gross pay is $1,306.88, determine his weekly net earnings

A: Given information is: Gross pay= $1306.88 Deductions are also given.

Q: Andrea is an employee of Fern Corporation and single. She also has her own business working as a…

A: In this question, we will Compute the total payroll, self-employment, and additional Medicare taxes…

Q: Calculate Social Security taxes, Medicare taxes, and FIT for Jordon Barrett. He earns a monthly…

A: Social Security Taxes-It is a payroll tax. In the US every employes and employee shall be liable to…

Q: old son paid during the same 12-month period totaled $1,800. For the current year, O had net income…

A: As per the provisions of the medical expense can be claimed if it is paid by the tax payer or his…

Q: Rick Portnoy's filing status is head of household, and he has earned gross pay of $1,300. Each…

A: Given, Current year taxable earnings for Medicare tax = $ 206,100

Q: In 2020, Mary and John Williams who are both over 65, married and file a joint return earned $29,408…

A: In Schedule A, Form 1040, deduction of only that portion of medical expense in available, which…

Q: Samantha makes $28.00 per hour and is paid for a 40 hour work week. She pays 15% federal income tax,…

Q: Maria has just finished her thirty-second year with her company and is getting ready to retire.…

A: Expected to receive Social Security = 55% of Average Annual Salary Average Annual Salary = $ 62,544…

Q: Belinda spent the last 60 days of 2019 in a nursing home. The cost of the services provided to her…

A: Tax refers to the amount charged by the government on the income earned by the companies and…

Q: You interviewed for a job that pays $68,500 annually. You pay 6% to Social Security, 1.7% to…

A: Formula: Salary after taxes = Gross salary - taxes

Q: Sammy's employer pays for 40% of her annual health insurance premium of $5,150.00. Sammy pays the…

A: As the employer is paying 40% of the premium Sammy will pay the balance of 100% - 40% = 60%

Q: Kyle Struck's filing status is single, and he has earned gross pay of $2,360. Each period he makes a…

A: Given information: Gross pay = $2,360.

Q: Gabe contributes 12% of the total cost of his individual health care coverage. He pays $33.45 per…

A: Calculation of amount of contribution paid for one year: Contribution for a week=$33.45 No. of…

Q: Reggie, who is 55, had AGI of $36,400 in 2020. During the year, he paid the following medical…

A: Adjusted gross income (AGI) refers to the amount which is taken into consideration by IRS to…

Q: Larren Buffett is concerned after receiving her weekly paycheck. She belleves that her deductions…

A: FICA funds for social security and Medicare for employees. Taxable earnings for social security and…

Q: 1. In 2021, Ivanna, who has three children under age 13, worked full-time while her spouse, Sergio,…

A: Disclaimer :- Hence it is a multiple type question we can answer only first question from the given…

Q: Ann hires a nanny to watch her two children while she works at a local hospital. She pays the…

A: Medicare tax & Social security tax comes under federal insurance contribution act. These are…

Q: Jon, age 45, had adjusted gross income of $26,000 in 2019. During the year, he incurred and paid the…

A: Deduction: The amount which are subtracted from the the individual or the corporation taxable income…

Q: Carolyne is paid $2,000.00 biweekly. This year, to date, she has earned $23,300.00. What will be the…

A: Payment of $2000 is done biweekly, which means paycheck is received biweekly. Calculation of total…

Q: Steve is the librarian in his city's library. The library provides group disability insurance where…

A: Tax Benefit:-It is a reduction in the tax liability which individual enjoy as per taxation law. It…

Q: ral income tax withholding was $144. Assuming the social

A: Given : Baker's Green weekly gross earning =1200 income tax withholding = 144 social security 6%…

Question

Lee Sutherlin is a self-employed electrical consultant. He estimates his annual net earnings at $31,900. How much Social Security and Medicare must he pay this year?

(a) Social Security-

(b) Medicare-

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys net self-employment income is also 136,000. Calculate the Social Security and self-employment taxes paid by Darrell and Whitney. Write a letter to Whitney in which you state how much she will have to pay in Social Security and self-employment taxes and why she owes those amounts.
Tia is married and is employed by Carrera Auto Parts. In 2019, Carrera established high-deductible health insurance for all its employees. The plan has a 2,700 deductible for married taxpayers. Carrera also contributes 5 percent of each employees salary to a Health Savings Account. Tias salary is 30,000 in 2019 and 32,000 in 2020. Tia makes the maximum allowable contribution to her HSA in 2019 and 2020. She received 600 from the HSA for her 2019 medical expenses. In 2020, she spends 1,400 on medical expenses from her HSA. The MSA earns 28 in 2019 and 46 in 2020. a. What is the effect of the HSA transactions on Tias adjusted gross income? b. How much does Tia have in her HSA account at the end of 2020?
Linda is an employee of JRH Corporation. Which of the following would be included in Lindas gross income? a. Premiums paid by JRH Corporation for a group term life insurance policy for 50,000 of coverage for Linda. b. 1,000 of tuition paid by JRH Corporation to State University for Lindas masters degree program. c. A 2,000 trip given to Linda by JRH Corporation for meeting sales goals. d. 1,200 paid by JRH Corporation for an annual parking pass for Linda.
Valentino is a patient in a nursing home for 45 days of 2019. While in the nursing home, he incurs total costs of 13,500. Medicare pays 8,000 of the costs. Valentino receives 15,000 from his long-term care insurance policy, which pays while he is in the facility. Assume that the Federal daily excludible amount for Valentino is 370. Of the 15,000, what amount may Valentino exclude from his gross income?
Fred, a self-employed taxpayer, travels from Denver to Miami primarily on business. He spends five days conducting business and two days sightseeing. His expenses are 400 (airfare), 150 per day (meals), and 300 per night (lodging). What are Freds deductible expenses?