Harmony Is Single and Was Self-Employed for the First Half

question 20

Essay

Harmony is single and was self-employed for the first half of 2018, earning $18,000 of Schedule C (business) net income. During the second half of the year, she began working as an employee and earned $38,000 in salary. What amount of self-employment taxes is Harmony required to pay?

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Definitions:

IQR

Interquartile range, a measure of statistical dispersion being the difference between the 75th and 25th percentiles, or quartiles, in a data set.

Range

The difference between the highest and lowest values in a data set, giving an indication of the data's dispersion or variability.

Median

The middle value in a set of numbers, which separates the higher half from the lower half.

Standard Deviation

A statistical metric that quantifies the spread or variability of a dataset, highlighting how far individual measurements deviate from the dataset's mean on average.