Eva received $85,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred $17,000 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 a self-employed contractor. What is her regular tax liability for the year?
Eva received $85,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred $17,000 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 a self-employed contractor. What is her regular tax liability for the year?
Chapter24: Multistate Corporate Taxation
Section: Chapter Questions
Problem 26P
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Question
Eva received $85,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred $17,000 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 a self-employed contractor. What is her regular tax liability for the year?
Transcribed Image Text:2022 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: But not over:
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$215,950
$539,900
$ 0
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$ 215,950
$ 539,900
The tax is:
10% of taxable income
| $1,027.50 plus 12% of the excess over $10,275
$4,807.50 plus 22% of the excess over $41,775
$15,213.50 plus 24% of the excess over $89,075
$34,647.50 plus 32% of the excess over $170,050
$49,335.50 plus 35% of the excess over $215,950
| $162,718 plus 37% of the excess over $539,900
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