Answer:
Randall
The amount of SE tax he must pay is:
$22,540.60
Explanation:
a) Data and Calculations:
Net profit income for 2019 = $209,000
Self-employment tax:
First $132,900 * 15.3% = $20,333.70
Excess of $76,100 ($209 - 132,900) * 2.9% = $2,206.90
Total SE tax = $22,540.60
b) The IRS states that Randall's self-employment (SE) tax 2019 rate is 15.3 percent on the first $132,900 of his net profit income plus 2.9 percent on the net income in excess of $76,100 ($209 - 132,900). It has been ascertained that being self-employed can significantly lower the tax bill. The self-employed can claim specific benefits, allowances, and reliefs if they are business expenses. These business expenses may include various office costs, advertising and marketing, and travel costs.
