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Eva received $65,000 in compensation payments from JAZZ Corp. during 2020. Eva incurred $12,000 in business expenses relating to her work for JAZZ Corp. JAZZ

Eva received $65,000 in compensation payments from JAZZ Corp. during 2020. Eva incurred $12,000 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 $12,400. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference.(Leave no answer blank. Enter zero if applicable.)

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?

Self-employment tax liability
Additional medicare tax liability

image text in transcribed image text in transcribed

2020 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: $ 0 $ 9,875 $ 40,125 $ 85,525 But not The tax is: over: $ 9,875 10% of taxable income $ 40,125 $987.50 plus 12% of the excess over $9,875 $4,617.50 plus 22% of the excess over $ 85,525 $40,125 $163,300 $14,605.50 plus 24% of the excess over $85,525 $33,271.50 plus 32% of the excess over $207,350 $163,300 $47,367.50 plus 35% of the excess over $518,400 $207,350 $156,235 plus 37% of the excess over $518,400 $163,300 $207,350 $518,400 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is But not The tax is: over: over: $ 0 $ 19,750 10% of taxable income $ 19,750 $ 80,250 $1,975 plus 12% of the excess over $19,750 $ 80,250 $171,050 $9,235 plus 22% of the excess over $80,250 $171,050 $326,600 $29,211 plus 24% of the excess over $171,050 $326,600 $414,700 $66,543 plus 32% of the excess over $326,600 $414,700 $622,050 $94,735 plus 35% of the excess over $414,700 $167,307.50 plus 37% of the excess over $622,050 $622,050 Schedule Z-Head of Household If taxable income is But not The tax is: over: over: $ 0 $ 14,100 10% of taxable income $ 14,100 $ 53,700 $1,410 plus 12% of the excess over $14,100 $ 53,700 $ 85,500 $6,162 plus 22% of the excess over $53,700 $ 85,500 $163,300 $13,158 plus 24% of the excess over $85,500 $163,300 $207,350 $31,830 plus 32% of the excess over $163,300 $207,350 $518,400 $45,926 plus 35% of the excess over $207,350 $154,793.50 plus 37% of the excess over $518,400 $518,400 over: Schedule Y-2-Married Filing Separately If taxable income is But not The tax is: over: $ 0 $ 9,875 10% of taxable income $ 9,875 $ 40,125 $987.50 plus 12% of the excess over $9,875 $ 40,125 $4,617.50 plus 22% of the excess over $ 85,525 $40,125 $ 85,525 $163,300 $14,605.50 plus 24% of the excess over $85,525 $163,300 $207,350 $33,271.50 plus 32% of the excess over $163,300 $47,367.50 plus 35% of the excess over $207,350 $311,025 $207,350 $83,653.75 plus 37% of the excess over $311,025 $311,025

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