Question
Eva received $73,000 in compensation payments from JAZZ Corporation during 2021. Eva incurred $11,000 in business expenses relating to her work for JAZZ Corporation JAZZ
Eva received $73,000 in compensation payments from JAZZ Corporation during 2021. Eva incurred $11,000 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 $12,550. 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?
Amount of FICA taxes ?
b. Assume that Eva is considered to be an employee. What is her regular income tax liability for the year?
Regular tax liability ?
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?
Self-employment tax liability?
Additional medicare tax liability?
d. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year?
Regular tax liability ?
Individuals Schedule X-Single If taxable income is over:But not over: The tax is: $ 0 $9.950 10% of taxable income $ 9,950 $ 40,525 S995 plus 12% of the excess over $9.950 $ 40,525 $ 86,375 S4.664 plus 22% of the excess over $40,525 $ 86,375 S 164.925 $14.751 plus 24% of the excess over $86,375 $164.925 S 209.425 $33.603 plus 32% of the excess over $164.925 $ 209,425 S 523,600 S47.843 plus 35% of the excess over $209,425 $ 523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19,900 S 81,050 81.990 plus 12% of the excess over $19.900 $ 81,050 S 172,750 $9,328 plus 22% of the excess over $81,050 $ 172.750 $ 329,850 $29.502 plus 24% of the excess over $172.750 $ 329,850 S 418,850 $67,206 plus 32% of the excess over $329,850 $ 418,850 S 628,300 $95.686 plus 35% of the excess over $418.850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 14,200 10% of taxable income $ 14,200 S 54,200 $1,420 plus 12% of the excess over $14,200 $ 54,200 S 86,350 S6,220 plus 22% of the excess over $54,200 $ 86,350 S 164,900 $13,293 plus 24% of the excess over $86,350 $ 164,900 S 209.400 $32.145 plus 32% of the excess over $164.900 $ 209,400 S 523,600 S46,385 plus 35% of the excess over $209,400 $ 523,600 $156,355 plus 37% of the excess over $523.600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 S 9.950 10% of taxable income $ 9,950 $ 40,525 995 plus 12% of the excess over $ 9.950 $ 40,525 S 86,375 $4.664 plus 22% of the excess over $40,525 $ 86,375 S 164,925 $14.751 plus 24% of the excess over $86,375 $ 164,925 S 209.425 $33.603 plus 32% of the excess over $164.925 $ 209,425 S 314,150 $47,843 plus 35% of the excess over $209,425 $ 314,150 S84.496.75 plus 37% of the excess over $314.150
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