2. [The following information applies to the questions displayed below.] Eva received $60,000 in compensation payments from JAZZ Corp. during 2018. Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,000. Based on these facts answer the following questions: Use Tax Rate Schedule for reference.

a. Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year?

b. Assume that Eva is considered to be an employee. What is her regular income tax liability for the year?

c. Assume that Eva is considered to be a self-employed contractor. What is her self-employment tax liability and additional Medicare tax liability for the year?

d. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year?

1. [The following information applies to the questions displayed below.] Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company. What amount of child and dependent care credit can Julie claim in each of the following alternative scenarios? Use Exhibit 8-9

a. Julie paid $2,000 to the daycare center and her AGI is $50,000 (all salary).

b. Julie paid $5,000 to the daycare center and her AGI is $50,000 (all salary).

c. Julie paid $4,000 to the daycare center and her AGI is $25,000 (all salary).

d. Julie paid $2,000 to the daycare center and her AGI is $14,000 (all salary).

e. Julie paid $4,000 to the daycare center and her AGI is $14,000 ($2,000 salary and $12,000 unearned income).

2018 Tax Rate Schedules Individuals Schedule X Single Schedule 2 Head of Houschold Ir taxable income is over: But not over: 9,525 38,700 S 82,500 $157,500 The tax is: If tasable income is over: But not over: 13,600 51,800 5 82.500 $157500 The tax s: $ 9.525 5 38.700 $ 82,500 $157 500 10% of taxable income $952.50 plus 12% ofthe ence" over $9,525 $4,453.30 plus 22% of the emess over S38.700 $14,009.50 ptas 24% of the core" over $82,500 $32,08950 plus 32% of the eccess ovef $157,500 $45,689.50 plus 35% of the emacs over $200,000 $150,609.50 plus 37% of the excess over $500,000 13,600 31.800 $ 82,500 $157.500 10%oftatable ncome $1,360 plus 12% of the eme" over $13,000 55.944 plus 22% of the 0ess over $51.000 $12,698 plus 24% of the mass ow $22,500 530,598 plus 32% or the excess over $157,500 $44,298 plus 35% of the 0ass orer $200,000 $149,298 plus 7% of the unce" oer $500,000 Schedule Y-1-Married Fhiling Jolaty or Qualitying WdoweT) Schedule Y-2-Married Filing Separately If tasable income in over But not over The tas i Iftatable income in over But not over The tar 2 $ 19,050 $ 77400 165.000 $315,000 19.050 $ 77,400 $165,000 315,000 10% of taxable income $1,005 ptas 12% of th greets over $19,050 $8,907 plus 22% ofthe encess ovet $77,400 $28, 179 ptas 24% ofthe excess over $165,000 $64,179 ptas 32% of tho once" over $315,000 $91,379 plus 35% of the eccess over S400.000 $161.379 ptas 37% of the acess over $600,000 S 9525 $38,700 82.500 $157,500 $ 9.325 $ 38,700 $ 82.500 157.500 10%oftmble income S952.50 plus 12% of the 0ass onr 39.525 $4453.50 plus 22% of the ezcess over $38,700 $14,009.50 plus 24% of the ence" over S82.500 $32,009.50 plus 32% of the amca" orer $157,500 $45.689.50 plus 35% of the escess over S200.000 SSO,689.50 plus 7% of the "cess over $300,000 XHIBIT 8-9 Child and Dependent Care Credit Percentage If AGI is then the over but not over percentage is 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 No limit 35% 34 0 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 32 31 30 29 28 27 26 25 24 23 20