Kyle, a single taxpayer, worked as a free-lance software engineer for the first

Question

Kyle, a single taxpayer, worked as a free-lance software engineer for the first three months of 2017. During that time, he earned $74,000 of self-employment income. On April 1, 2017, Kyle took a job as a full-time software engineer with one of his former clients Hoogle Inc. From April through the end of the year, Kyle eamed $168,000 in salary What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? (Round your intermediate calculations to the nearest whole dollar amount.) lf-employment/FICA tax

Explanation / Answer

Computation of Self employment Tax liability for Kyle Amount Income from Self Employment $74,000.00 Income from Salary $168,000.00 Total Income $242,000.00 Less: Limit for Deduction ($127,200) Taxable Income $114,800.00 Self employment tax rate ( d) 15.30% Self employment tax liability (c*d) $17,564.40

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