Question

Fabian (16), will be claimed as a dependent on his parents' tax return. His only income during the year consisted of $10,000, which was his net profit from a lawn mowing business. What is Fabian's self-employment tax

Answer 1

Fabian's self-employment tax equals $1,413.

Net Income from Self employment = $10,000

Income liable for Self employment Tax = $10,000 * 92.35%

Income liable for Self employment Tax = $9,235

Fabian's Self employment Tax = $9,235 * 15.3%

Fabian's Self employment Tax = $1,413

Hence, Fabian's self-employment tax equals $1,413

Therefore, the Option B is correct.

Missing options "$383 $1,413 $1.530 $10.000"

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