************************************************** **Personal, Dependency exemption: $3,950



Filing Status Deduction*

Basic Standard Deduction**

Additional Standard

Social Security Base Amounts



Married Joint

$12,400

$1,200

$32,000\$44,000



Single

6,200

1,550

$25,000\$34,000



Head of Household

9100

1550

$25,000\$34,000




*Special rules if claimed on someone else’s tax return
**Blind taxpayer, taxpayer 65 or older
Self employment taxes are assessed at 15.35% of net* self-employment income below $117,000 and at 2.9% on the excess. *net=92.35% of the amount reported. Note that the $117,000 amount is reduced by wages paid. Salary does not reduce the 2.9% tax


Tax rate on qualified dividents
· 0%--MTR 10% or 15%
· 15%--MTR between 25% and 35%
· 20%--MTR=39.6%




1. Jake received a salary of $105, 000 during 2014, which was not church employee income. His ordinary income subject to self-employment taxes from partnership. What is his tax liability for self-employment taxes?
2. For 2014, Your Corporation had taxable income of $478,000. It shows $15,000 of dividends. What is the corporation’s taxable income?

Sorry, this is CLEARLY a homework question, something we are specifically FORBIDDEN from answering.

Sorry, this is CLEARLY a homework question, something we are specifically FORBIDDEN from answering.


So what kind of question are we allowed to ask on here?


So what kind of question are we allowed to ask on here?


And this is not graded. It is book problem practice for my Tax accounting exam.

It's not practice if someone else does it for you because you learn nothing. And what you are supposed to do... is show us your work... what you have for an answer. And if applicable... explain why you think that is the answer. THEN we can help.

But what this site does not do... is do your assignments for you. If you can't do the work to pass the exam based on what you have learned...then people really won't want you doing their tax accounting.

Regarding homework questions: you should tell us what you think the answer is, and why, and then we can provide feedback or will make suggestions on how to complete the problem.

Regarding homework questions: you should tell us what you think the answer is, and why, and then we can provide feedback or will make suggestions on how to complete the problem.

I think the answer for No.1 is 8,888 and for number 2 is 466,000


It's not practice if someone else does it for you because you learn nothing. And what you are supposed to do... is show us your work... what you have for an answer. And if applicable... explain why you think that is the answer. THEN we can help.

But what this site does not do... is do your assignments for you. If you can't do the work to pass the exam based on what you have learned...then people really won't want you doing their tax accounting.

No need to tell me that. I am having hard time understanding how to do this that's why I asked. But thanks for your consider and input

Several comments on the wording of the problem:

The self-employment tax rate is NOT 15.35%, but rather 15.3%.

If he received a salary, then there is NO self-employment tax. The partnership would pay the employer half of the FICA tax at 7.65% and Jake would pay the other half at 7.65%.

I cannot comment on the corporate tax issue as I do NOT do corporate returns.