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Sonya Started a Self-Employed Consulting Business in the Last Part

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Essay

Sonya started a self-employed consulting business in the last part of the year and earned $40,000.She had been employed as manager in a consulting firm prior to starting her own business and had earned $135,000.
(a)What is Sonya's self employment tax for 2016?
(b)What is Sonya's deduction for AGI for the SE tax?


Definitions:

F-Tests

A group of statistical tests that compute the ratio of variances to analyze the statistical significance of the differences between means.

Nondirectional

Pertains to hypotheses or tests that do not specify a direction of effect but instead test for any difference or association.

Type II Error

The probability of accepting a null hypothesis when it is false.

Multiple T Tests

Statistical tests used to compare the means of two groups on several different dependent variables.

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