Carmelia wants you to calculate her take-home pay after she has paid FICA She earns 25642.00 a year?

Answer 1

Employee with a employer she can look at her copy of her W-2 form for this amount or multiply 25642 X 7.65% = 1961.61

Or self employed taxpayer 25642 X 15.3% = 3923.23

She can subtract the above amounts from the 25642.00 to get the amount that she wants with only the social security and medicare taxes being subtracted from the above amount.

You will need to report that income, and any related expenses, on Form 1040, Schedule C, Profit or Loss from the Business operation, or you may qualify to use Form 1040, Schedule C-EZ, TO determine your Net Profit from the Business operation. You will also need to use the Form 1040, Schedule SE, Self Employment Tax form to compute and report your social security and Medicare tax on the net profit from the business operation.

For instructions and forms go to the IRS gov web site and use the search box for publication 334 a very good place to start with examples

Publication 463 Travel, Entertainment, Gift, and Car Expenses

Use the search box at the IRS gov web site for Small Business and Self-Employed Tax Center

Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more.

Click on the below related links for more information.