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Taxpayer earns $83,000 from her regular job. She has started selling jam she cans herself at the local farmers' market. She nets about $3,000 a
Taxpayer earns $83,000 from her regular job. She has started selling jam she cans herself at the local farmers' market. She nets about $3,000 a year from the sales.a. Does she have to report the $3,000 as gross income?b. What marginal rate will apply to the net income from the sales?c. How much additional tax will she have to pay because of the jam sales?d. If Taxpayer wanted to know what her net proceeds were from jam sales, meaning her net sales less the tax she has to pay, what would you tell her?
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