jennica works as an independent contractor and has received her 1099 tax form, shown below. she had $3,571…

jennica works as an independent contractor and has received her 1099 tax form, shown below. she had $3,571 in expenses. how much will jennica owe for self - employment taxes? the self - employment tax rate is 15.3%. you may use your calculator to help you. analyze the 1099 form to determine the amount of self - employment tax owed.

jennica works as an independent contractor and has received her 1099 tax form, shown below. she had $3,571 in expenses. how much will jennica owe for self - employment taxes? the self - employment tax rate is 15.3%. you may use your calculator to help you. analyze the 1099 form to determine the amount of self - employment tax owed.

Answer

Explanation:

Step1: Calculate net income

Net income = Non - employee compensation - Expenses. From the form, non - employee compensation is $31895$ and expenses are $3571$. So, net income = $31895 - 3571=28324$.

Step2: Calculate self - employment tax

Self - employment tax = Net income×Self - employment tax rate. The self - employment tax rate is $15.3%$ or $0.153$ in decimal form. So, self - employment tax = $28324\times0.153 = 4333.572\approx4333.57$.

Answer:

$4333.57$