Very lost on the whole business side of doing taxes, could use some help.

Advanced Scenario 8: Ramon Torrez Directions Using the tax software, complete the tax retum, including Form 1040 and all appropri- ate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNS) or Employer Identification Numbers (EINS), replace the Xs as directed, or with any four digits of your choice. For the purpose of these scenario questions only, ignore the VITA/TCE total business expense limitation for Schedule C. Interview Notes Ramon works as a self-employed ride share driver. Ramon is a cash-basis taxpayer who materially participates in the operation of his business. He did not make any payments that would require him to file Form 1099. - Ramon uses business code 485990. - Ramon had no prior year unallowed losses. He received Form 1099-MISC and Form 1099-K from the ride share company. He had an additional $2,745 in cash tip income from individual customers NOT included on the Forms 1099. Ramon provided a statement from the ride share company that indicated the amount of mileage driven and fees paid for the year. These fees are considered ordinary and necessary for the ride share business. - 30,200 miles driven while transporting SOCLAL SECURI SECUE customers. - Ride share fee: $4,800 - Safe driver fee: $140 227-00-XXXX Ramon Torrez - Airport fee: $515 - GPS device fee: $320 Ranok Tareg Ramon's recordkeeping application shows he drove 5,830 miles between rides; 2,700 miles driven between his home and his first and last customer of the day. He had the following miscellaneous expenses: - Snacks for customers: $280 - Auto deodorizers: $15 - Phone chargers for customer use only: $120 Meals eaten while waiting for customers: $1,200 The total mileage on his car for 2019 was 44,730 miles, of that 6,000 was personal miles. He placed his car, a 2016 sedan, in service on January 6, 2017. He always takes the standard mileage rate. This is Ramon's only car and it was available for personal use. Ramon found his Fom 1098-E online stating he paid $3,600 in student loan interest in 2019. Ramon did not have any health insurance for the year. Ramon received a CP01-A Notice assigning him an identity protection personal identification number (IP PIN). His IP PIN is 357900. CORRECTED (if checked) OMB No. 154-0116 1 Rents PAYER'S name, stroet addresa city or town, state or province, country, ZIP or foreign postal code, and telephone no. Miscellaneous Income 2019 TOP CARS RIDE SHARE 8009 PIKE CIR YOUR CITY, STATE ZIP 2 Reyalties Form 1099-MISC 4 Federal income tax withheld 24 3 Other income 2$ 5 Fishing boat proceeds Copy B For Recipient PAYER'S TIN 6 Madical and heath care paymants RECIPIENT'S TIN 38-700XXXX 227-00-XXXX 24 7 Nonomployee compensation 8 Subettuto payments in lieu o dividiends or inbereet PECIPIENT'S name This is important tax information and is being furnished to the IRS. If you are RAMON TORREZ $ 225.00 9 Payer made direct sales of $6.000 or more of oonsumer products to a buyer (recipient for resale 11 Stroet address (inckuding apt. no.) required to file a 10 Crop insurance proceeds retum, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been 1551 CONCORD CIRCLE City or town, state or province, country, and ZIP or foreign postal code 12 YOUR CITY, STATE ZIP FATCA ing requirement 13 Excess golden parachute payments Account number (see instructions) 14 Grass proceeds paid to an attomey orted. 18 State inceme 15a Section 409A delerrais 15b Section 40OA income 16 State tax withheld 17 State Payer's state no. 2$ 24 2$ Form 1099-MISC (kosp for your records) Department of the Treasury - Internal Revenue Service www.ire gowForm1000MISC CORRECTED (if checked) FILER'S TIN OMB No. 1545-2206 FILER'S name, street sddress, city or town, state or province, country, ZP or foreign postal code, and telephone no. Payment Card and Third Party Network Transactions 38-700XXXX PAYEE'S TIN TOP CARS RIDE SHARE 8009 PIKE CIR YOUR CITY, STATE ZIP 2019 227-00-XXXX 1a Gross amount of payment card/third party network transactions Fom 1009-K 29,000 1b Card Not Present transactions 2 Merchant category code Copy B For Payee 2$ Check to indicate if FILER is a fan): Check to indcate trangactions reported are: Payment card 3 Number of payment transactions Payment settlement ontity (PSE) 4 Federal income tax withheld Electronic Payment Facilitator (EPFYOther third party This is important tax information and is being fumishod to the RS. If you are required to file a retum, a negligence penalty or other sanction may be imposed on you if taxable income rasulta from this 24 Third party network Sa January PAYEE'S name Sb February 24 1,200 $ 800 RAMON TORREZ 50 March 5d April Street address (inokuding apt. no.) 2,050 $ 2,100 5e May 5f June 2,000 $ Sh August 1551 CONCORD CIRCLE 2$ 3,400 transaction and the IRS determines that it has not been reported 5g July 5,800 $ 5j Octobar 24 City or town, state or province, country, and ZIP or foreign poetal code 2,800 YOUR CITY, STATE ZIP 5i Septamber 24 5,900 $ 1,200 PSE'S name and telephone number 51 December 5k November 24 700 $ 1,050 7 State identification no. a Sate income tx withheld 6 State Account number (see instructions) 2$ Form 1099-K (Keep for your records) www.irs.gowFom1099K Department of the Treasury - Internal Revenue Service 28. What income must Ramon report on Schedule C, Profit or Loss From Business? A. Only income reported on Form 1099-MISC and Form 1099-K from the ride share company. B. Only cash tip income from individual customers. C. None. He must report all income from his ride share company as Other Income. D. His income reported on Form 1099-MISC, Form 1099-K, and the cash tip income from his customers. 29. What is Ramon's mileage expense deduction (at the standard mileage rate) for his business as a ride share driver? (Round to the nearest dollar.) OA. $25,943 B. $22,463 OC. $20,897 D. $17,516 32. Ramon's Qualified Business Income (QBI) deduction is $0 because he has no taxable income before the QBI deduction. True False