Question

Clem paid self-employment tax of $21,200 (the employer portion is $10,600), and Wanda had $4,600 of Social Security taxes withheld from her pay. What is the total amount of taxes paid by Clem and Wanda?

1) $26,800
2) $15,800
3) $25,800
4) $16,800

Answer 1

The total amount of taxes paid by Clem and Wanda is the sum of Clem's self-employment tax of $21,200 and Wanda's Social Security tax withholdings of $4,600, which equals $25,800.

Step-by-step explanation:

The total amount of taxes paid by Clem and Wanda is the sum of both Clem's self-employment tax and Wanda's Social Security tax withholdings. Clem has paid a self-employment tax of $21,200, which includes both the employee and employer portions (the employer portion being $10,600).

Wanda has $4,600 of Social Security taxes withheld from her pay. To find the total tax amount paid, we add Clem's self-employment tax and Wanda's Social Security withholdings together: $21,200 (Clem) + $4,600 (Wanda) = $25,800 total.