Ava has net earnings from self-employment of $125,000. She also earned salary of $170,000 from a job held earlier in the year. How much Additional Medicare Tax will be owed on the self-employment income?

The correct answer is $3,625.

Explanation:

According to the scenario, the given data are as follows:

Self earning = $125,000

Salary income = $170,000

AS we know that, Medicare tax percent = 2.9%

So, we can calculate the medicare tax that will be owed on self employment income by using following formula:

Medicare tax owed = Self earning * medicare Tax percent

= $125,000 * 2.9%

= $3,625