Eva (Gaytor's friend) received $60,000 in compensation payments from JAZZ Corp. during 2019. Eva is a single individual and she incurred $5,000 out of pocket business expenses relating to her work for JAZZ, Corp. JAZZ (business travels, meeting expense, etc) did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,200. Based on these facts answer the following questions:

1. If Eva has an option, would you (the tax advisor) advise Eva choose to be an employee or as an independent contractor? How does "accounting period" and "other taxes" concept discussed plays a role of your decision? Don't give me an existential reason, but show me the money. We are in tax class....give me a business/tax reason.

Answer rating: 100% (QA)

As a tax advisor I would advise Eva to carefully consider her options based on the tax implications of being an employee versus an independent contrac... View the full answer