Your client eamed $75,000 as an employee and was given a W-2 form showing $75,000 in wages with $9,680 federal tax and $3.638 state (IL) tax withheld She also earned $24,000 as a consultant, and the $24,000 of income was reported on a 1099-Misc form, showing her as a independent contractor She paid $50 per month for a cell phone that she used exclusively for this business She has no other income or deductible expenses

The tax return is showing a balance due for both federal and IL, and you believe that the balances owed are caused by the consulting income. Compute the federal and IL taxes attributable to the additional $24,000 of consulting income (not the entire tax return) Assume a flat 5% tax rate for IL (assessed based on federal AGI). Assume that she is filing as single and will take the standard deduction. The personal exemption for IL is $2,275 for 2019. The federal standard deduction is $12,200.

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As per given details 1st we need to calculate the how federal tax state tax has calculated on employ... View the full answer