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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 $135,000.
a.What is Sonya's self employment tax for 2019?
b.What is Sonya's deduction for AGI for the SE tax?


Definitions:

Significance Test

A statistical procedure used to test if the observed results significantly differ from what was expected under the null hypothesis.

T Test Statistic

A value used in hypothesis testing, calculated from sample data, to assess the compatibility of the sample with a null hypothesis concerning the mean.

Random Sample

A sample drawn from a population in a way that gives each individual an equal chance of being selected, used to achieve representativeness.

Service Time

The period required to complete a process or fulfill a request.

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