Example 3-5
Taylor Talbot receives wages amounting to $129,800. Their net earnings from self-employment amount to $32,800. Talbot must count $30,400 of their earnings in determining taxable self-employment income for OASDI taxes.
OASDI Taxable Wage Base | − | Wages Received | = | OASDI Taxable Self−Employment Income |
$160,200 | − | $129,800 | = | $30,400 |
Ralph Henwood was paid a salary of $80,400 during 20– by Odesto Company. In addition, during the year, Henwood started his own business as a public accountant and reported a net business income of $68,500 on his income tax return for 20–. Compute the following:
a. The amount of FICA taxes that was withheld from his earnings during 20– by Odesto Company.
Line Item Description | Amount |
OASDI | fill in the blank 1 of 2$ |
HI | fill in the blank 2 of 2$ |
b. Henwood’s self-employment taxes on the income derived from the public accounting business for 20–.
Line Item Description | Amount |
OASDI | fill in the blank 1 of 2$ |
HI | fill in the blank 2 of 2$ |




