Question
Mia is employed as a restaurant manager at Jack Rabbit Slims, a 1950s themed diner that holds a dance contest every night. Prior to the
- Mia is employed as a restaurant manager at Jack Rabbit Slims, a 1950s themed diner that holds a dance contest every night. Prior to the CTY 2019, she just managed the restaurant five nights a week. However, due to the unexpected death of the bartender, Antwan Rockamora, Mia had to take over as bartender at Jack Rabbit Slims. Mias expenses for the CTY in connection with her job are summarized as follows:
Clothing (1950s style, adaptable to other uses) | $1,500 |
Bartending courses online and in class | 3,500 |
Lodging expense for out-of-town bartending classes | 950 |
As to the out-of-town bartending courses, Jack Rabbit Slims only paid for transportation, and asked Mia to pay for the cost of the meals and lodging. Mia paid $430 for meals. Her salary from Jack Rabbit Slims for the CTY 2019 was $65,000. Her tips from bartending totaled $8,500. How do you treat Mias activities on her 2019 tax return?
- Mia started getting interested in dance contests soon after working at Jack Rabbit Slims. After losing a few contests, she decided to take dance lessons. In the CTY, she spent $1,800 on dance lessons and entry fees to various dance contests. It paid off she won three contests during the CTY. Her biggest payout was a $1,000 cash prize at Twist and Shout Diner, but she also won free meals for life at Fat Bunnys Diner (valued at $2,500 per year, but she only ate $500 worth of food during the CTY). Even though she only won a trophy from the contest at Jack Rabbit Slims, that contest was her most significant win of the year.
Mia is filing jointly with her husband Wallace using the cash basis. How do you treat these activities on Mias 2019 tax return and what tax forms should be used?
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