Question
Eva received $70,000 in compensation payments from JAZZ Corporation during 2023. Eva incurred $9,500 in business expenses relating to her work for JAZZ Corporation JAZZ
Eva received $70,000 in compensation payments from JAZZ Corporation during 2023. Eva incurred $9,500 in business expenses relating to her work for JAZZ Corporation JAZZ did not reimburse Eva for any of these expenses. Eva is single and deducts a standard deduction of $13,850. Based on these facts, answer the following questions
2023 Tax Rate Schedules
IndividualsSchedule X-Single
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 11,000 | 10% of taxable income |
$ 11,000 | $ 44,725 | $1,100 plus 12% of the excess over $11,000 |
$ 44,725 | $ 95,375 | $5,147 plus 22% of the excess over $44,725 |
$ 95,375 | $ 182,100 | $16,290 plus 24% of the excess over $95,375 |
$ 182,100 | $ 231,250 | $37,104 plus 32% of the excess over $182,100 |
$ 231,250 | $ 578,125 | $52,832 plus 35% of the excess over $231,250 |
$ 578,125 | $174,238.25 plus 37% of the excess over $578,125 |
Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 22,000 | 10% of taxable income |
$ 22,000 | $ 89,450 | $2,200 plus 12% of the excess over $22,000 |
$ 89,450 | $ 190,750 | $10,294 plus 22% of the excess over $89,450 |
$ 190,750 | $ 364,200 | $32,580 plus 24% of the excess over $190,750 |
$ 364,200 | $ 462,500 | $74,208 plus 32% of the excess over $364,200 |
$ 462,500 | $ 693,750 | $105,664 plus 35% of the excess over $462,500 |
$ 693,750 | $186,601.5 plus 37% of the excess over $693,750 |
Schedule Z-Head of Household
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 15,700 | 10% of taxable income |
$ 15,700 | $ 59,850 | $1,570 plus 12% of the excess over $15,700 |
$ 59,850 | $ 95,350 | $6,868 plus 22% of the excess over $59,850 |
$ 95,350 | $ 182,100 | $14,678 plus 24% of the excess over $95,350 |
$ 182,100 | $ 231,250 | $35,498 plus 32% of the excess over $182,100 |
$ 231,250 | $ 578,100 | $51,226 plus 35% of the excess over $231,250 |
$ 578,100 | $172,623.5 plus 37% of the excess over $578,100 |
Schedule Y-2-Married Filing Separately
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 11,000 | 10% of taxable income |
$ 11,000 | $ 44,725 | $1,100 plus 12% of the excess over $11,000 |
$ 44,725 | $ 95,375 | $5,147 plus 22% of the excess over $44,725 |
$ 95,375 | $ 182,100 | $16,290 plus 24% of the excess over $95,375 |
$ 182,100 | $ 231,250 | $37,104 plus 32% of the excess over $182,100 |
$ 231,250 | $ 346,875 | $52,832 plus 35% of the excess over $231,250 |
$ 346,875 | $93,300.75 plus 37% of the excess over $346,875 |
Note: Leave no answer blank. Enter zero if applicable. Round your intermediate and final answers to the nearest whole dollar amount.
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 are 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?
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