Question

Eva received $60,000 in compensation payments from JAZZ Corp. during 2018. 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 $12,000. Based on these facts answer the following questions: Use Tax Rate Schedule for reference.

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

amount Fica tax

b. Assume that Eva is considered to be an employee. What is her regular income tax liability for the year? (Round your final answer to 2 decimal places.)

regular tax liability

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? (Round your intermediate computations & final answer to the nearest whole dollar amount.)

	Self-employment tax liability Additional medicare tax liability

       

       

       

     

     

Answer 1

ivethat (g] $ 3, 390 . Because Ela s -by dolç, she pays fica taxes 다 5.653 - $3 131 : 4ς. so as calculated beloco

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46t165 as caloulaled beloco () gybss self 6oLoao expenses 3) Net self 未551000 Tcoma gelf-emplaymt