Harmony Was Self-Employed for the First Half of 2014, Earning

question 3

Short Answer

Harmony was self-employed for the first half of 2014, 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:

Property Interest

A legal right or interest in a tangible or intangible object, which provides the holder certain privileges regarding the use, disposition, and possession of the property.

Restrict

To limit or control the size, amount, or range of something through regulations or conditions.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, designed to harmonize the law of sales and other commercial contracts.

Unconscionable

A term used to describe an agreement or term within an agreement that is so unjust or overwhelmingly one-sided in favor of one party that it is deemed unenforceable under the law.