Eva received $84,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred $16,500 in business expenses relating to her work for JAZZ Corporation JAZZ did not reimburse Eva for any of these expenses. Eva is single and deducts a standard deduction of $12,950. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference. Note: Leave no answer blank. Enter zero if applicable. Round your intermediate and final answers to the nearest whole dollar amount. Required: Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year? Assume that Eva is considered to be an employee. What is her regular income tax liability for the year? Assume that Eva is considered to be a self-employed contractor. What are her self-employment tax liability and additional Medicare tax liability for the year? Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year?
Eva received $84,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred $16,500 in business expenses relating to her work for JAZZ Corporation JAZZ did not reimburse Eva for any of these expenses. Eva is single and deducts a standard deduction of $12,950. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference. Note: Leave no answer blank. Enter zero if applicable. Round your intermediate and final answers to the nearest whole dollar amount. Required: Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year? Assume that Eva is considered to be an employee. What is her regular income tax liability for the year? Assume that Eva is considered to be a self-employed contractor. What are her self-employment tax liability and additional Medicare tax liability for the year? Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Eva received $84,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred $16,500 in business expenses relating to her work for JAZZ Corporation JAZZ did not reimburse Eva for any of these expenses. Eva is single and deducts a standard deduction of $12,950. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference.
Note: Leave no answer blank. Enter zero if applicable. Round your intermediate and final answers to the nearest whole dollar amount.
Required:
- Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year?
- Assume that Eva is considered to be an employee. What is her regular income tax liability for the year?
- Assume that Eva is considered to be a self-employed contractor. What are her self-employment tax liability and additional Medicare tax liability for the year?
- Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year?
Transcribed Image Text:1
Eva received $84,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred $16,500 in business expenses
relating to her work for JAZZ Corporation JAZZ did not reimburse Eva for any of these expenses. Eva is single and deducts a standard
deduction of $12,950. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference.
Note: Leave no answer blank. Enter zero if applicable. Round your intermediate and final answers to the nearest whole dollar
amount.
Required:
5
points
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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 are 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?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Amount of FICA taxes
Required D
Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year?
< Required A
Required B >
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Step 1: Self-employment tax:
VIEWStep 2: (a) Determine the amount of FICA taxes for the year:
VIEWStep 3: (b) Determine the regular income tax liability for the year:
VIEWStep 4: (c) Determine self-employment tax liability and additional Medicare tax liability for the year:
VIEWStep 5: (d) Determine the regular tax liability for the year:
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