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Problem $4-18$

Self$-$Employment Tax $($LO $4\mathrm{.}10)$

Tommy Staples is a self$-$employed surfboard maker in $2023.$ His Schedule C net income is $$136,000$ for the year. He also has a part$-$time job a earns $$35,000$ in wages subject to FICA taxes. Calculate James' self$-$employment tax for $2023$ using Schedule SE$.$

SCHEDULE SE

Self$-$Employment Tax

$($Form $1040)$

Department of the Treasury

Attach to Form $1040,1040-$SR$,1040-$SS$,$ or $1040-$NR$.$

Internal Revenue Service

Go to

www$.$irs.gov$/$ScheduleSE for instructions and the latest information.

OMB No$.1545-007$

Name of person with self$-$employment income $($as shown on Form $1040,$

Social security number of person

$1040-$SR$,1040-$SS$,$ or $1040-NR)$

with self$-$employment income

Tommy Staples

Self$-$Employment Tax

Note: If your only income subject to self$-$employment tax is church employee income, see instructions for how to report your income and the definition of church employee income.

A If you are a minister, member of a religious order, or Christian Science practitioner and you filed form $4361,$ but you had $$400$ or

Skip lines $1$a and $1b$ if you use the farm optional method in Part II$.$ See instructions.

$1$a Net farm profit or $($loss$)$ from Schedule F$,$ line $34,$ and farm partnerships, Schedule K$-1($Form $1065),$ box $14,$ code $A.$

b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve

b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F$,$ line $4$b$,$ or listed on Schedule K$-1($Form $1065),$ box $20,$ code AH Skip line $2$ if you use the nonfarm optional method in Part II$.$ See instructions.

$2$ Net profit or $($loss$)$ from Schedule C$,$ line $31$; and Schedule K$-1($Form $1065),$ box $14,$ code A $($other than farming$).$ See instructions for other income to report or if you are a minister or member of a religious order

$3$ Combine lines $1a,1b,$ and $2$dotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdotsdots

$4$a If line $3$ is more than zero, multiply line $3$ by $92\mathrm{.}35\%(0\mathrm{.}9235),$ Otherwise, enter amount from line $3$dotsdots. Note: If line $4a$ is less than $$400$ due to Conservation Reserve Program payments on line $1b,$ see instructions. b If you elect one or both of the optional methods, enter the total of lines $15$ and $17$ here $..........$

c Combine lines $4$a and $4b.$ If less than $$400,$ stop; you don't owe self$-$employment tax.

Exception: If less than $$400$ and you had church employee income, enter $-0-$ and continue $..........$

$5$a Enter your church employee income from Form W$-2.$ See instructions for definition of church employee income

b Multiply line $5$ a by $92\mathrm{.}35\%(0\mathrm{.}9235).$ If less than $$100,$ enter $-0-$

$6$ Add lines $4c$ and $5b$

$7$ Maximum amount of combined wages and self$-$employment earnings subject to social security tax or the $6\mathrm{.}2\%$

$8$a Total social security wages and tips $($total of boxes $3$ and $7$ on Form$($s$)$ W$-2)$ and railroad retirement $($tier $1)$ compensation. If $$160,200$ or more, skip lines $8b$ throuah $10,$ and ao to line $11.$

Problem $4-18$

Self$-$Employment Tax $($LO $4\mathrm{.}10)$

Tommy Staples is a self$-$employed surfboard maker in $2023.$ His Schedule C net income is $$136,000$ for the year. He also has a part$-$time job a earns $$35,000$ in wages subject to FICA taxes. Calculate James' self$-$employment tax for $2023$ using Schedule SE$.$

SCHEDULE SE

Self$-$Employment Tax

$($Form $1040)$

Department of the Treasury

Attach to Form $1040,1040-$SR$,1040-$SS$,$ or $1040-$NR$.$

Internal Revenue Service

Go to

www$.$irs.gov$/$ScheduleSE for instructions and the latest information.

OMB No$.1545-007$

Name of person with self$-$employment income $($as shown on Form $1040,$

Social security number of person

$1040-$SR$,1040-$SS$,$ or $1040-NR)$

with self$-$employment income

Tommy Staples

Self$-$Employment Tax

Note: If your only income subject to self$-$employment tax is church employee income, see instructions for how to report your income and the definition of church employee income.

A If you are a minister, member of a religious order, or Christian Science practitioner and you filed f

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