Oscar, an independent contractor, worked as a referee at several local high schools in 2022.He earned $18,000 from refereeing, but he did not receive a Form 1099 - NEC. How does hereport this income? As gross receipts on Schedule C (Form 1040). He does not have to reportthis income because a tax form was not issued to him. On Form 4852 as wage income, withthe Form W-2 not received. On Schedule 1 (Form 1040), Part I, line 8i, as an activity notengaged in for profit income.

Oscar must report his income of $18,000 even though he did not receive a Form 1099-NEC. Here are the…

Answered: Oscar, an independent contractor,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information (The following information applies to the questions displayed below) What amounts are included in gross income for the following taxpayers? Note: Leave no answers blank. Enter zero if applicable. c. Ajax published a story about Pete, and as a result Pete sued Ajax for damage to his reputation. Ajax lost in court and paid Pete an award of $20,000. Amount included in Gross Income
Last summer, Casey mowed lawns to earn extra money. He was paid $250 in cash, and no deductions were made from his pay. Casey did not re files his tax return, he is required to report this income. True or False? True False
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: Use Tax Rate Schedule for reference. (Leave no answer blank. Enter zero if applicable.) 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
Determine the taxpayer's current-year (1) economic income and (2) gross income for tax purposes from the following events: (LO.1) a. Ja-ron's employment contract as chief executive of a large corporation was terminated, and he was paid $500,000 not to work for a competitor of the corporation for five years. b. Elliot, a six-year-old child, was paid $5,000 for appearing in a television commercial. His parents put the funds in a savings account for the child's education. c. Valery found a suitcase that contained $100,000. She could not determine who the owner was. d. Winn purchased a lottery ticket for $5 and won $750,000. e. Larry spent $1,000 to raise vegetables that he and his family consumed. The cost of the vegetables in a store would have been $2,400. f. Dawn purchased an automobile for $1,500 that was worth $3,500. The seller was in desperate need of cash.
Cameron works as a construction worker. During the 2020 financial year, he received the amounts listed below. Advise Cameron which amounts to include in his 2020 tax return as Assessable Income. Also give reasons why amounts are to be excluded. Refer to law. Salary payments totaling $200,000 from him employer, private use of a company car provided by his employer (Taxable Value of $15,000), a bonus payment of $5,000 that was earned during May 2020, yet not paid into his bank account until 25 July 2020, a Net Capital Gain of $10,000 from selling his speedboat, (e) a total of $5,000 earned from selling handmade fishing lures – he only makes and sells the lures in his spare time and for fun.
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2023. During that time, he earned $90,000 of self-employment income. On April 1, 2023, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $198,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Self-employment/FICA tax
Gen is a new sole proprietor. By the end of January 2022, she needs to issue what document to any independent contractors to whom she paid $600 or more to do project work for her business? Form 1099-K, Payment Card and Third-Party Network Transactions. Form 1099-MISC, Miscellaneous Income. Form 1099-NEC, Nonemployee Compensation. Form W-2, Wage and Tax Statement.
Cooper is a CPA and prepared several tax returns during the current tax year for compensation. In the rush to get returns filed timely, he failed to sign three of the returns that he prepared. How much is his failure to sign penalty? Question 12 options:
Evan, a single individual, operates a service business that earned $110,000 (after all applicable deductions) in 2021. The business has no tangible property and paid no W-2 wages. Required: b. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $175,000. * I only need Requirement B to be solved
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2022. During that time, he earned $54,000 of self-employment income. On April 1, 2022, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $200,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? Note: Round your intermediate calculations to the nearest whole dollar amount. Self Employment/FICA taxes= ???
Alan is the director of your corporation. He is a resident of Alberta. He does not receive remuneration as an employee. You pay him a directors' fee of $6,050 every three months. Alan has claimed the basic amount, claim code 1, on his TD1 federal and provincial forms. Use 2022 rates. Determine the federal income tax for this payment ($6050)
Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Clem's expenses that are deductible for AGI this year (if any) under the following independent circumstances: Note: Leave no answer blank. Enter zero if applicable. a. Clem is self-employed, and this year he incurred $830 in expenses for tools and supplies related to his job. Because neither was covered by a qualified health plan, Clem paid health insurance premiums of $5,490 to provide coverage for himself and Wanda (not through an exchange).What is the deductible amount for AGI? b. Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,270 in utilities and $985 in depreciation.What is the deductible amount for AGI c. Clem paid self-employment tax of $17,600 (the employer portion is $8,800), and Wanda had $3,500 of Social Security taxes withheld from her pay.What is the…

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