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Beau Earned $25,000 of Net Earnings from a Tax Preparation

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Essay

Beau earned $25,000 of net earnings from a tax preparation business that he runs during tax season.He also earned a salary of $95,000 from his full-time job.How much self-employment tax must he pay for 2014? (Round calculations to the nearest dollar)


Definitions:

Land Account Transaction

An accounting entry that affects the balance of the land account, recording the acquisition, improvement, or disposal of land.

Tax Purposes

For Tax Purposes means considerations related to calculating tax liabilities and filing tax returns as required by law.

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