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Sonya Started a Self-Employed Consulting Business in the Last Part

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Essay

Sonya started a self-employed consulting business in the last part of the year and earned $40,000.She had been employed as manager in a consulting firm prior to starting her own business and had earned $125,000.
(a)What is Sonya's self employment tax for 2016?
(b)What is Sonya's deduction for AGI for the SE tax?


Definitions:

Cold and Distant

Describing someone as cold and distant means they are emotionally unresponsive, unfriendly, and tend to keep others at a distance.

Punishment

The process by which a behavior is weakened, decreasing the likelihood of repetition.

Permissive

A parenting or authoritative style characterized by low demands with high responsiveness.

Set Rules

Established and defined guidelines or principles designed to control behavior or operations in specific contexts.

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