SlideShare a Scribd company logo
3. Kendall can claim a credit for sick leave for certain self-employed individuals for 2022.
True
False
- Kendall and Siena are married and file a joint return. - Siena is a full-time science teacher at a
local public middle school. She spent $600 of her own money to purchase supplies for labs she
conducted with her students. She did not receive any reimbursement for these expenses. -
Kendall is a self-employed driver for Delicious Deliveries. Kendall provided a statement from
the food delivery service that indicated the number of miles driven and fees paid for the year.
These fees are considered ordinary and necessary for the food delivery business: - 4,786 miles
driven while delivering food from 1/1/2022 6/30/2022 - 4,880 miles drived while delivering food
from 7/1/2022 12/31/2022 - Insulated box rental: $300 - Vehicle safety inspection (required by
Delicious Deliveries): $50 - GPS device fee: $120 - Kendall's record keeping application shows
he also drove 4,833 miles between deliveries ( 2 , 393 miles from 1/1/2022 6/30/2022 and 2,440
miles from 7/1/2022 12/31/2022 ) and 4,062 miles ( 2 , 051 miles from 1/1/2022 6/30/2022 and
2,011 miles from 7/1/2022 12/31/2022 ) driven between his home and his first and last delivery
point of the day. Kendall has a separate car for personal use. He bought and started using his
second car for business on September 1, 2020. - Kendall also kept receipts for the following out-
of-pocket expenses: - $100 on tolls - $120 for car washes - $48 for parking tickets - $75 for
Personal Protective Equipment (PPE) used during deliveries - $150 for snacks and lunches
Kendall consumed while working - Kendall provided the Form 1099-NEC and Form 1099-K that
he received from Delicious Deliveries. - Kendall also received $500 in cash tips that were not
reported elsewhere. - Kendall was sick with Covid-19 and was unable to work for 14 days in
May 2022. - Kendall purchased virtual currency through an electronic transfer of cash from his
checking account. He had no other virtual currency transactions. - The U. S. federal student loan
that Siena owed for postsecondary educational expenses was forgiven in 2022. The amount of
student loan canceled was $15 , 000 . Siena did not receive any tax form reporting this amount.

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