1- Julie takes her husband to Vegas for a conference. Her husband is not employe
ID: 2597357 • Letter: 1
Question
1- Julie takes her husband to Vegas for a conference. Her husband is not employee, and though the conference pertains to Julie’s medical, it does not pertain to her husband’s. His primary job in life is to waste as much time as possible. Julie is permitted to deduct her husband’s travel costs on her Schedule C.
- True
- False
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2- What is usually more beneficial?
- Deduction
- Credit
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3- Is a garbage truck driver who works for one company during that day and another company at night a self-employed contractor or an employee?
- Self-employed Contractor
- Employee
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4- Is a lawyer who works for one client and bills at an hourly rate, and the client determines all aspects of the case; however, the lawyer is the one who did the work to his/her own specifications a self-employed contractor or an employee?
- Self-employed
- Employee
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5- Is a Certified Public Accountant who has one client where she works full time a self-employed contractor or an employee?
- Self-employed
- Employee
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6- Is a medical biller that has 25 clients, works out of her home, and codes each the doctor’s patients using the same method that she decides a self-employed contractor or an employee?
- Self-employed
- Employee
Explanation / Answer
jul Julie cannot deduct her spouse expenditure as he is not an employee of company. Therefore the above statement is False. Tax credit is worth more than deduction. Tax credit is reduction in tax payable, whereas deduction is from taxable income. Therefore credit is more beneficial. A person’s employment depends upon the contractual relationship with employer. It is to be determined that whether there is contract of service or contract for service. Also if he is owner of truck and providing services, then he will be self employed. Accordingly, he is a self employed person. If a person works for his client then he is an employee, if a person provides services and works as per his own specifications then he is a Self employed person. The important aspect is determination of contract of service or contract for service. Therefore, he is a self employed person. A person providing service to client Full time at his office is an employee of the client. The medical biller and coder is working on doctor’s patients and not his own patients. Although he is using his own judgement and specifications there is no contractual relationship with patients. Therefore, he is an employee.
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