Mrs. Singer owns a profitable sole proprietorship. For each of the following cases, use a Schedule SE, Form 1040, to compute her 2016 self-employment tax and her income tax deduction for such tax.
a. Compute 2016 self-employment tax and the income tax deduction for such tax if Mrs. Singer’s net profit from Schedule C was $51,458. She had no other earned income.
b. Compute 2016 self-employment tax and the income tax deduction for such tax if Mrs. Singer’s net profit from Schedule C was $51,458, and she received a $137,000 salary from an employer.