a. Assume that Eva is concidered to be an employee. What amount of FICA taxes is she required to pay for the year? b. What is her regular income tax liability for the year? c. Assume that Eva is concidered self-employed contractor. What is her self-employment tax liability and additional medicare tax liability for the year?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 67IIP
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a. Assume that Eva is concidered to be an employee. What amount of FICA taxes is she required to pay for the year?

b. What is her regular income tax liability for the year?

c. Assume that Eva is concidered self-employed contractor. What is her self-employment tax liability and additional medicare tax liability for the year?

d. Assume Eva is concidered to be self employed contractor. What is her regular tax liability for the year?

Required information
[The following information applies to the questions displayed below.]
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.)
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] 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.)
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