Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help . Unsure how this would look on a tax return I am pretty sure it goes on 1040 . Royalty payments add up
Please help . Unsure how this would look on a tax return I am pretty sure it goes on 1040 . Royalty payments add up to 26,620. So far I have Buisness income 13,608, Joyce would report 26,620 , 4000 is taxable and the royalties wont go on Schedule E. Will upvote million thanks!
1. Joyce writes children's books for a variety of publishers. She has been self-employed since 2012. As a freelance writer, Joyce incurs costs associated with preparing a manuscript for which she does not yet have a contract. During the year, Joyce makes four business trips, each 3 days long, to meet with various publishers. For shorter trips that are closer to home, she either drives or takes the train and returns the same day. On December 10, 2020, Joyce receives an advance (see below) on her next book. Under the contract, Joyce is scheduled to begin work on the book on February 1, 2021, and must have it completed by November 30, 2021. The Schnappaufs' home has two telephones. Joyce has a separate phone number for her business. The information on Joyce's business is listed below. Royalties (Exhibits A-10, A-11, and A- 12) Publisher's advance $4,000 Office supplies 170 Train tickets 535 Airfare (4 trips) 1,670 Lodging (12 nights) 2,240 Meals (12 days) 610 Telephone ( $28 monthly fee per 672 Internet provider 570 Cell phone, including business calls 913 Business-related postage 87 Printing/copying 162 Legal fees 2,000 Interest on auto 254
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started