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Required information [The following information applies to the questions displayed below.] Eva received $60,000 in compensation...

Required information

[The following information applies to the questions displayed below.]

Eva received $60,000 in compensation payments from JAZZ Corp. during 2018. 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 $12,000. Based on these facts answer the following questions: Use Tax Rate Schedule for reference.

d. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year? (Round your intermediate computations and final answer to the nearest whole dollar amount.)

2018 Tax Rate Schedules

Individuals

Schedule X-Single

If taxable income is over: But not over: The tax is:
$           0 $    9,525 10% of taxable income
$    9,525 $ 38,700 $952.50 plus 12% of the excess over $9,525
$ 38,700 $ 82,500 $4,453.50 plus 22% of the excess over $38,700
$ 82,500 $157,500 $14,089.50 plus 24% of the excess over $82,500
$157,500 $200,000 $32,089.50 plus 32% of the excess over $157,500
$200,000 $500,000 $45,689.50 plus 35% of the excess over $200,000
$500,000 $150,689.50 plus 37% of the excess over $500,000

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

If taxable income is over: But not over: The tax is:
$           0 $ 19,050 10% of taxable income
$ 19,050 $ 77,400 $1,905 plus 12% of the excess over $19,050
$ 77,400 $165,000 $8,907 plus 22% of the excess over $77,400
$165,000 $315,000 $28,179 plus 24% of the excess over $165,000
$315,000 $400,000 $64,179 plus 32% of the excess over $315,000
$400,000 $600,000 $91,379 plus 35% of the excess over $400,000
$600,000 $161,379 plus 37% of the excess over $600,000

Schedule Z-Head of Household

If taxable income is over: But not over: The tax is:
$           0 $ 13,600 10% of taxable income
$ 13,600 $ 51,800 $1,360 plus 12% of the excess over $13,600
$ 51,800 $ 82,500 $5,944 plus 22% of the excess over $51,800
$ 82,500 $157,500 $12,698 plus 24% of the excess over $82,500
$157,500 $200,000 $30,698 plus 32% of the excess over $157,500
$200,000 $500,000 $44,298 plus 35% of the excess over $200,000
$500,000 $149,298 plus 37% of the excess over $500,000

Schedule Y-2-Married Filing Separately

If taxable income is over: But not over: The tax is:
$           0 $    9,525 10% of taxable income
$    9,525 $ 38,700 $952.50 plus 12% of the excess over $9,525
$ 38,700 $ 82,500 $4,453.50 plus 22% of the excess over $38,700
$ 82,500 $157,500 $14,089.50 plus 24% of the excess over $82,500
$157,500 $200,000 $32,089.50 plus 32% of the excess over $157,500
$200,000 $300,000 $45,689.50 plus 35% of the excess over $200,000
$300,000 $80,689.50 plus 37% of the excess over $300,000

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