During the year, Angela and Michael reported the $120,000 of gross earnings. Angela is a self-employed CPA
Question:
During the year, Angela and Michael reported the $120,000 of gross earnings. Angela is a self-employed CPA and Michael is a tax manager employed at local CPA firm. Angela incurred normal business-related expenses and Michael incurred some unreimbursed work-related expenses. Michael's employer withholds the required taxes from his weekly earnings.
Based on reading and the tax law, comment of differences in how a taxpayer's employment status (e.g., employee vs. independent contractor/self-employed) impacts the following:
1) Reporting of income (wages, salary, business profits)?
2) Reporting and the deductibility of expenses (e.g., employee unreimbursed expenses, business expenses)?
3) Taxes and tax withholding and payments (e.g., income tax, FICA tax, FUTA tax)?
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen