Eva received $72,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred $10,500 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 $72,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred $10,500 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?
Chapter24: Multistate Corporate Taxation
Section: Chapter Questions
Problem 26P
Related questions
Question
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Eva received $72,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred $10,500 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:2022 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: But not over:
$
0
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$215,950
$ 539,900
$ 10,275
$ 41,775
$ 89,075
$170,050
$215,950
$539,900
$
$ 14,650
$ 55,900
$ 89,050
$ 170,050
$ 215,950
$ 539,900
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: But not over:
$
0
$ 20,550
$ 20,550
$ 83,550
$178,150
$ 83,550
$ 178,150
$ 340,100
$ 431,900
$ 647,850
Schedule Z-Head of Household
If taxable income is over: But not over:
0
$340,100
$431,900
$647,850
$
0
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$ 215,950
$ 323,925
$ 14,650
$ 55,900
$ 89,050
$170,050
$215,950
$539,900
Schedule Y-2-Married Filing Separately
If taxable income is over: But not over:
$ 10,275
$ 41,775
$ 89,075
The tax is:
$170,050
$215,950
$323,925
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
The tax is:
10% of taxable income
$2,055 plus 12% of the excess over $20,550
$9,615 plus 22% of the excess over $83,550
$30,427 plus 24% of the excess over $178,150
$69,295 plus 32% of the excess over $340,100
$98,671 plus 35% of the excess over $431,900
$174,253.50 plus 37% of the excess over $647,850
The tax is:
10% of taxable income
$1,465 plus 12% of the excess over $14,650
$6,415 plus 22% of the excess over $55,900
$13,708 plus 24% of the excess over $89,050
$33,148 plus 32% of the excess over $170,050
$47,836 plus 35% of the excess over $215,950
$161.218.50 plus 37% of the excess over $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
$87,126.75 plus 37% of the excess over $323,925
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Reposing as Requested to answer subpart 4 only. Thank you. (Subpart is bolded and underlined.
Eva received $72,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred $10,500 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?
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