Annie is self-employed and has $58,000 in income from her business. She also has investments that generated dividends of $3,000 and interest of $2,500. What is Annie's self-employment tax for the year?

First, you need to know the self-employment taxes:

The self-employment tax is 92.35%

Social security tax is 12.4% and Medicare tax is 2.9% = (15.3%)

Dividends and interest are not a part of the income.

58000 * 92.35% * 15.3%

Turn the percentages into decimal form in order to multiply. You can do this by moving the decimals over twice or dividing each percentage by 100.

58000*.9235 *.153 = $8,195.

Annie's self-employment tax for the year is $8,195.