Harmony Was Self-Employed for the First Half of 2016, Earning

question 62

Short Answer

Harmony was self-employed for the first half of 2016, 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?

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Definitions:

British Concepts

Ideas, philosophies, or principles that originate from or are associated with Great Britain, encompassing a wide range of fields including law, governance, and social norms.

American Revolution

The period of political turmoil and military conflict between 1775 and 1783, in which the Thirteen Colonies gained independence from Great Britain.

First Continental Congress

A meeting of delegates from twelve of the thirteen American colonies in 1774, convened in Philadelphia to address colonial grievances against British policies.

Tasks

Specific jobs or pieces of work assigned or undertaken by an individual as part of a larger project or responsibility.