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Peta-kay is self-employed and has net earnings of $2,000
Peta-kay is self-employed and has net earnings of $2,000. How much will Peta-Kay owe in self-employment tax? O $306.00. O $153.71. O $0. O $282.59. Question 25 1 pts Which of the following refers to tax revenue exceeding annual expenditures? Federal income tax. Federal surplus. O Federal deficit. O U.S. debt. Question 26 1 pts Which of the following is more valuable for the taxpayer? O $1,000 tax deduction. O $1,000 tax credit. O A tax credit and a tax deduction are the same value. O Kiddie tax credit. Question 27 1 pts Mia drove 3,000 miles for medical appointments, and the medical-related mileage rate is $0.17. How much is her mileage deduction? O $1,000. O $510. O $500 O It's not deductible.
Expert Solution
Solution:
24) (a) $306.00
Reason: The self-employment tax rate is 15.3%. So Peta- Kay self employment tax is $2,000 * 15.3% = $306.00.
25) ( b) federal surplus
Reason: when revenue exceeds expenditure it's called surplus and in relation to tax revenue exceeding expenditure it's called federal surplus.
26) (b) $1000 tax credit.
reason: A tax credit reduces your tax liability dollar for dollar whereas a tax deduction reduces the amount of your taxable income - which is used to calculate your tax liability. Tax credits are generally more valuable because they reduce your tax liability by one dollar for every dollar of the credit.
27) (b) $510
??????Calculation : $3000 * $0.17 = $510.
??????Note: as per chegg policy please only one question so we can explain in more better way. Thank you?
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