Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Eva received $53,000 in compensation payments from JAZZ Corp. during 2019. Eva incurred $6,000 in business expenses relating to her work for JAZZ Corp. JAZZ

image text in transcribed

Eva received $53,000 in compensation payments from JAZZ Corp. during 2019. Eva incurred $6,000 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 $12,200. Based on these facts answer the following questions: Use Tax Rate Schedule for reference.

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? (Round your intermediate computations & final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

Self-employment tax liability ?

Additional medicare tax liability . ?

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

regular tax liability . ?

?Please show all work for calculations

image text in transcribed
Schedule X-Single If taxable Income But not over: The tax Is: is over: 0 5 9.700 10% of taxable income $ 9.700 5 39.475 $970 plus 12% of the excess over $9,700 $ 39.475 $ 84.200 $4,543 plus 22% of the excess over $39.475 $ 84.200 $160.725 $14,382.50 plus 24% of the excess over $84.200 $160.725 $204.100 $32.748.50 plus 32% of the excess over $160,725 $204.100 $510,300 $46,628.50 plus 35% of the excess over $204.100 $510.300 $153,795.50 plus 37% of the excess over $510.300

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

9th edition

1-119-49356-3, 1119493633, 1119493560, 978-1119493631

More Books

Students also viewed these Accounting questions