Chapter 8: LO3

118500

The 2016 on the Socilal Security Tax limit is $___,___

unlimited

The base for the Medicare portion of the self-employment tax is ___

net income, 92.35, Social Security, Medicate, .9

The process for determining the taxpayer's self-employment taxes payable requires the following steps: Step 1: Compute the amount of the taxpayer's ___ ___ from self- employment activities Step 2: Multiply the amount from Step (1) by ___ percent. Step 3: ___ ___ Tax Step 4: ___ Tax Step 5: ___ Percent Additional Medicare tax.

Medicare

There is no wage base limit for the ___ component of the FICA tax,

Schedule C, 92.35

To get net earnings from self-employment you multiply the taxpayer's net income from ____ ___ by ____.

entire

While employees share their FICA (Social Security and Medicare) tax burden with employers, self-employed taxpayers must pay the ___ FICA tax burden on their self-employment earnings.