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:

Independence

The condition or quality of being free from dependence, control, or influence.

Oral Fixation

A concept in psychoanalytic theory suggesting an obsession with oral activities due to unresolved conflicts during the oral stage of psychosexual development.

Passive Personality

A personality trait characterized by a tendency to submit to the will or desires of others, often leading to a lack of assertiveness.

Childlike Dependency

A behavior pattern where an individual relies excessively on others for emotional support or decision making, similar to the dependence of a child on their caregivers.