Alice is single and self-employed in 2019. Her net business profit on her Schedule C for the year is $150,000. What is her self-employment tax liability and additional Medicare tax liability for 2019?

$19,790

Explanation:

A taxpayer’s tax base for computing a self-employed taxpayer’s self-employment tax (i.e., net earnings from self-employment) is the taxpayer’s net business profit from Schedule C multiplied by 92.35%.

So, Alice’s net earnings from self-employment is her net profit from Schedule C of $150,000 x 92.35% = $138,525.

Alice will owe $15,773 ($127,200 maximum amount x 12.4%) in Social Security taxes and $4,017 ($138,525 x 2.9%) for the Medicare component of FICA taxes.

Alice owes total self-employment tax of $19,790 ($15,773 + $4,017).

She is not subject to additional Medicare tax because her net earnings from self-employment do not exceed $200,000.

Her total tax liability is $19,790.23

Explanation:

In calculating Alice's self employment tax liability and medicare tax liability, her net business profit from Schedule C is multiplied by 92.35%.

$150,000 x 92.35% = $138,525.

Being that the maximum taxable amount is $127,200, Alice will owe $127,200 x 12.4% = $15,772.80 in Social Security taxes and

$4,017.23 ($138,525 x 2.9%) for the Medicare component of FICA taxes.

Therefore, the total self-employment tax is $19,790.03 ($15,772.80+ $4,017.23).

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

answer; tech (a) is correct;