Final answer:
The total tax due for Stuart for 2017 includes self-employment tax on the net self-employment income ($2,142), plus an individual income tax amount that cannot be calculated without additional information on tax brackets and deductions.
Step-by-step explanation:
The total tax due for 2017 for Stuart, including self-employment tax, requires a multi-step calculation. First, calculate net self-employment income by subtracting the loss from the second business ($10K) from the earned self-employment income from the first business ($24K), resulting in $14K net self-employment income.
To this, add wages of $20K, interest income of $3K, and non-qualified dividend income of $5.1K. This results in a total income of $42.1K.To find the taxable income, we must subtract any deductions and exemptions that may apply. However, without additional information on deductions or exemptions for Stuart's case, we'll proceed with the given figures.
Next, self-employment tax is calculated on the net self-employment income, which includes both the employer's and the employee's share of Social Security and Medicare taxes. For 2017, this rate is 12.4% for Social Security on the first $127,200 of combined wages and self-employment income and 2.9% for Medicare on all combined self-employment income and wages.
Since the example does not provide specific instructions for a deductions or exemption amount, and to keep the example simplified, we'll base our calculations on the income figures provided. Individual income tax can be estimated using the rate provided (assuming all of Stuart's income is taxed at this marginal rate, which likely overestimates the tax owed).
For the purpose of this example, we will forgo these specifics and estimate that Stuart’s tax due will include his individual income tax and his self-employment tax.The self-employment tax is calculated as 12.4% + 2.9% = 15.3% of the net self-employment income of $14K, which amounts to $2,142.
The individual income tax will depend on Stuart's total taxable income and his tax bracket, which was not provided in the details. Hence, we cannot calculate the exact amount of individual income tax without more information. Therefore, the estimated total tax due for Stuart for 2017 would include at least the self-employment tax of $2,142 plus an uncertain amount of individual income tax.