Keisha and Jay are married and file a joint return. Jay is an employee and received a Form W-2 showing $30,000 in wages for the year. Keisha is a self-employed driver for Delicious Deliveries. Keisha and Jay had health insurance subsidized by Jay's employer. They paid $3,600 pre-tax in premiums for the year. Keisha provided a statement from the food delivery service that indicated the amount of mileage driven and fees paid for the year. These fees are considered ordinary and necessary for the food delivery business: 7,200 miles driven while delivering food Insulated box rental: $300 Vehicle safety inspection (required by Delicious Deliveries): $50 GPS device fee: $120 click here to see Keisha's 1099-NEC and 1099-K Keisha also kept receipts for the following out-of-pocket expenses: $100 for tolls $120 for car washes $48 for parking tickets $75 for Personal Protective Equipment (PPE) used during deliveries $150 for snacks and lunches Keisha consumed while working Keisha's record keeping application shows she also drove 4, 125 miles between deliveries and 4,200 miles driven between her home and her first and last delivery point of the day. Keisha has a separate car for personal use. She bought and started using her second car for business on September 1, 2020. Keisha provided the Form 1099-NEC and Form 1099-K that she received from Delicious Deliveries. See the next page. Keisha also received $300 in cash tips that were not reported elsewhere. Keisha and Jay also paid the following this year: Mortgage interest = $5,000 Property tax = $3,000 Donations of clothing in good used condition = $350 (fair market value) Keisha and Jay also paid the following this year: Mortgage interest = $5,000 Property tax = $3,000 Donations of clothing in good used condition = $350 (fair market value) Cash donations to qualified charities = $550 Tools for Jay's job = $300 State income taxes withheld = $4,000 Keisha won $10,000 on a scratch off lottery ticket. She has $3,000 of losing tickets. 11. Keisha's net Schedule C income is $10,040. True False CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. OMB No 1545-0116 2021 Delicious Deliveries 567 ALVIN AVENUE YOUR CITY, YOUR STATE, ZIP Nonemployee Compensation RECIPIENT'S TIN 345-00-XXXX PAYER'S TIN 20-400XXXX RECIPIENT'S name Keisha Johnson Form 1099-NEC 1 Nonemployee compensation $ 1,800.00 2 Payer made direct sales totaling $5,000 or more of consumer products to recipient for resale 3 Copy B For Recipient This is importanta information and is being fumished to the RS. If you are required to file a retum, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported 7 State income 4 Federal income tax withheld Street address including apt. no.) 789 DANA DRIVE City or town, state or province, country, and ZIP or foreign postal code YOUR CITY, YOUR STATE, ZIP Account number (see instructions) 5 State tax withheld 6 Stato/Payer's state no. Form 1099-NEC keep for your records) www.ins.gov/Form1099NEC Department of the Treasury - Internal Revenue Service CORRECTED (ut checked) FILER 'S name, street address, city or town, state or province, country, ZIP FILER'S TIN OMB No 1545-2205 or foreign postal code, and telephone no 20-400XXXX Payment Card and Delicious Deliveries PAYEE'S TIN Third Party 567 ALVIN AVENUE 345-00-XXXX 2021 Network YOUR CITY, YOUR STATE, ZIP ta Gross amount of payment card/third party network Transactions transactions 15,245.00 Forn 1099-K 1b Card Not Present 2 Merchant category code Copy B transactions Check to indicate FILER is aank Check to indicate transactions For Payee reported are: Payment settlement enthy PSE) Payment card 3 Number of payment 4 Federal income tax Electronic Payment Facilitator transactions withheld This is important tax (EPF/Other third party Information and is Third party network 3,300 $ being furnished to PAYEES name 5a January 5b February the IRS. If you are $ required to file a 1,200.00 1,270.00 $ Keisha Johnson retum, a negligence 5c March Sd Art penalty or other Street address including apt.no) 1,340.00 $ 1,250.00 sanction may be imposed on your 5e May 58 June faxable income 789 DANA DRIVE 1,290.00 $ 1,300.00 results from this transaction and the 59 July sh August IRS determines that it City or town, state or province, country, and ZIP or foreign postal code 1,240.00 $ 1,140.00 has not been reported YOUR CITY, YOUR STATE, ZIP 51 September October PSE'S name and telephone number 1,270.00 $ 1,235.00 5k November 51 December 1,310.00 $ 1,400.00 Account number is instructions) 6 Stato 7 State identification no. 8 State income tax witheld DS -8008- Form 1099-K Keep for your records) www.insgow Form1000K Department of the Treasury - Internal Revenue Service