Fabienne earned $70,000 working for the State of Alaska in 2020. On the weekends she sells...

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Fabienne earned $70,000 working for the State of Alaska in 2020. On the weekends she sells quilts at farmers markets that she makes with hand died fabric out of her sewing studio in her back yard. Fabienne loves quilting and she is really good at it! In 2019 she had $40,500 in sales and $37,500 in materials and entry fees for the farmers markets. In 2020, she increased her revenue to $46,000 and spent $40,000 in materials and entry fees. Fabienne has a separate bank account for her quilting activity and keeps monthly accounting records in quick books. How would you recommend Fabienne prepare her tax return (ie: what amount should she report as income and expense) and why? Fabienne earned $70,000 working for the State of Alaska in 2020. On the weekends she sells quilts at farmers markets that she makes with hand died fabric out of her sewing studio in her back yard. Fabienne loves quilting and she is really good at it! In 2019 she had $40,500 in sales and $37,500 in materials and entry fees for the farmers markets. In 2020, she increased her revenue to $46,000 and spent $40,000 in materials and entry fees. Fabienne has a separate bank account for her quilting activity and keeps monthly accounting records in quick books. How would you recommend Fabienne prepare her tax return (ie: what amount should she report as income and expense) and why?

Answer rating: 100% (QA)

SOLUTION Based on the given information Fabienne has a regular job as an employee of the State of Alaska and she also operates a quilting business on ... View the full answer