Ellen Uses the Head of Household Filing Status and Has

question 37

Essay

Ellen uses the head of household filing status and has a dependent daughter. Ellen has self-employment income of $310,000 as an architect and $10,000 of self-employment losses from a jewelry making business.
a.What is Ellen's 0.9% additional Medicare tax for 2015?
b.Is Ellen allowed to include a portion of the additional Medicare tax in computing the deduction for self-employment taxes reported as an adjustment for AGI on the front page of her income tax return?

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the payer's ledger but not yet cashed or cleared by the bank.

Checkbook

A book containing blank checks and a register for recording checks written and deposits made.

Electronic Conveniences

Tools and services provided digitally that simplify tasks and transactions, often making daily activities more efficient through technology.

Financial Statement

A proper journal that captures the flow of financial transactions and the economic positioning of an entity, whether a business, an individual, or another type.