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

question 69

Essay

Harmony is single and was self-employed for the first half of 2020, 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:

Place of Delivery

The agreed-upon or designated location where goods are to be delivered or transferred from the seller to the buyer.

Performing Contractual

The process of fulfilling the obligations as outlined in a contract.

Excused Sellers

Sellers who are relieved from the obligation to deliver goods under a contract due to certain conditions that make performance impracticable.

Usage of Trade

A set of practices or behaviors that are widely accepted and used by a particular industry or commercial sector.