Example 3-5
Taylor Talbot receives wages amounting to $129,800. Their net earnings from self-employment amount to $32,800. Talbot must count $30,400 of their earnings in determining taxable self-employment income for OASDI taxes.
|
OASDI Taxable Wage Base |
− |
Wages Received |
= |
OASDI Taxable Self−Employment Income |
|
$160,200 |
− |
$129,800 |
= |
$30,400 |
Ralph Henwood was paid a salary of $80,400 during 20– by Odesto Company. In addition, during the year, Henwood started his own business as a public accountant and reported a net business income of $68,500 on his income tax return for 20–. Compute the following:
a. The amount of FICA taxes that was withheld from his earnings during 20– by Odesto Company.
|
Line Item Description |
Amount |
|
OASDI |
fill in the blank 1 of 2$ |
|
HI |
fill in the blank 2 of 2$ |
b. Henwood’s self-employment taxes on the income derived from the public accounting business for 20–.
|
Line Item Description |
Amount |
|
OASDI |
fill in the blank 1 of 2$ |
|
HI |
fill in the blank 2 of 2$ |
