Eva received $60,000 in compensation payments from JAZZ Corp. during 2020. Eva incurred $5,000 in business expenses

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Eva received $60,000 in compensation payments from JAZZ Corp. during 2020.  Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp.  JAZZ did not reimburse Eva for any of these expenses.  Eva is single and she deducts a standard deduction of $12,400.  Based on these facts, answer the following questions:

a. Assume that Eva is considered to be an employee.  What amount of FICA taxes is she required to pay for the year?

b. Assume that Eva is considered to be an employee.  What is her regular income tax liability for the year?

c. Assume that Eva is considered to be a self-employed contractor.  What is her self-employment tax liability and additional Medicare tax liability for the year?

d. Assume that Eva is considered to be a self-employed contractor.  What is her regular tax liability for the year?

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Related Book For  answer-question

Taxation Of Individuals And Business Entities 2021

ISBN: 9781260247138

12th Edition

Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham

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