In: Accounting
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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 |