An owner of a consulting buiness has an estimated annunal income of 63,000. His Social secuirty tax is 12.4%?

Question

Medicare is 2.9% and his estimated fed income tas rate is 22% how much quarterly estimated tax must be sent to IRS for the first quarter?
A=5,874.75
B= 13,860.00
C= 15,750.00
D=23,498.99

Answer 1

A) is the anwser.

63,000 / 4 = 15,750 per quarter

Since the owner is self-employed, responsible for both employee and employer Soc. Sec. and Medicare:

15,750 * (.22 + .124+ .029) = 5,874.75

Answer 2

in case you nevertheless stay and paintings right here, you will get it once you retire - interior the form of a month-to-month earnings from the U.S. government. this is referred to as investment your retirement with Social protection reward. Your business organization is had to pay the government an equivalent volume out of his very own funds to boot on your withholdings. On precise of that, he's had to withhold Federal earnings taxes. in case you record tax returns in step with annum, there's a hazard which you will get part of those withholdings interior the form of a reimbursement, offered you had sufficient withheld and/or had qualified deductible expenditures which contain a intense volume of medical funds, actual aspects taxes, and so on.

Answer 3

A is clearly the obvious answer; B is almost everything she makes and C and D are more than she makes in a quarter.

Answer 4

Neither...You would have to send 3,465. Your income tax is 22% of 63,000 which is 13,000 and some change. A quarter is 1/4. which is 3,465.

Answer 5

E. None of the above. (The correct answer is $5,690.41) Your next homework assignment is to explain why THIS is the correct amount and none of the options offered are.

Hint: Read Schedule SE carefully. It will tell you why my answer is correct.