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

question 103

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?


Definitions:

W-2 Form

An official tax document used in the United States that reports an employee's annual wages and the amount of taxes withheld from their paycheck.

Earnings

The amount of money that an individual or business receives in exchange for labor, services, or investing capital, typically measured over a specific period of time.

Deductions

To deduct or subtract; remove, take away.

Longevity

A long duration of life; lasting a long time.

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