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How much income must Lura report from self/employment activities How much income

ID: 2512941 • Letter: H

Question

How much income must Lura report from self/employment activities How much income must Lura report from self/employment activities uestion 61 of 75 Laura is self-employed. She received a Form 1099-MISC from one of the firms for which she performed services, reporting $24,600 in non-employ documentation reporting the $ report from self-employment activities? ee compensation. The other firm for which she worked on a contractual basis did not send her any 400 they paid her. Without taking her expenses into account, how much income must Laura O $25,000 O $24,600 o$400 ?Mark for follow up s Back Save / Return Later Summary Next>

Explanation / Answer

Income Laura must report under Self-employed should be:

Reciept of form 1099 MISC = $ 24600*

Other firm's contractual basis = $ 400 **

TOTAL INCOME = $25000

*In this case, she is receipient of Form 1099 - MISC so her income would be treates as Self employed income.

** Even if she would not have received such form still the nature of work is on a contractual basis which is covered under self employed, so this will also be treated as Self Employment Activity.

Therefore, her total income from self employed is $25000

Option A is correct answer.

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