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Ellen Uses the Head of Household Filing Status and Has

question 81

Essay

Ellen uses the head of household filing status and has a dependent daughter. Ellen has self-employment income of $310,000 as an architect and $10,000 of self-employment losses from a jewelry making business.
a.What is Ellen's 0.9% additional Medicare tax for 2016?
b.Is Ellen allowed to include a portion of the additional Medicare tax in computing the deduction for self-employment taxes reported as an adjustment for AGI on the front page of her income tax return?


Definitions:

The ALU

An Arithmetic Logic Unit (ALU) is a digital circuit used to perform arithmetic and logic operations in computers.

Mathematical Calculations

The process of using mathematical symbols and methods to perform quantifiable measurements and solve numerical problems.

Logical Comparisons

The process of evaluating two or more variables by applying logical operators to determine a true or false outcome.

Moore

Refers to Moore's Law, an observation that the number of transistors on a microchip doubles approximately every two years, though the cost of computers is halved.

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