1 points Time Remaining 1 hour 14 minutes 35 seconds01:14:35 my workCheck My Work button is now enabledItem 13 Time Remaining 1 hour 14 minutes 35 seconds01:14:35 Alice is single and self-employed in 2020. Her net business profit on her Schedule C for the year is $196,000. What is her self-employment tax liability and additional Medicare tax liability for 2020

Explanation:

According to the IRS, the amount subject to self-employment tax is 92.35% of net income from self-employment for the year.

Alice's taxable income is:

= 92.35% * 196,000

= $181,006

Self employment tax-liability:

Social security tax for 2020 is 12.4% for the first $137,700 of income.

= 12.4% * 137,700

= $17,074.80

Medicare tax:

= 2.9% on taxable income

= 2.9% * 181,006

= $‭5,249.17

Self-employment tax is:

= 17,074.80 + 5,249.17

= $‭22,323.97

Additional Medicare tax applies on only amounts above $200,000 so it is $0 in this case.

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!