Simon Stevens is a high school history teacher. Simon is a national expert in ancient Mayan ruins. In July of 20X1, he was hired by the local university to
teach an elective course in ancient Mayan history. Simon then conducted a field trip of the ruins in Guatemala with some of the local students from July 27th to August 7th. He recruited another local expert to teach his last class that fell
during the dates of the trip.
Simon earned $55,000 from his teaching job. He negotiated a contract price of
$5,000 to teach the university elective and $7,000 to conduct the tour. The
university provided Simon with office space during the month of July. He used his laptop computer to prepare his lectures and the tour material. Additionally, Simon used his extensive collection of books to prepare his notes. He was not provided any benefits or insurance by the university. Simon was paid on July
31st and August 31st.
Simon is not sure how to prepare his tax return. He has a number of expenses
from his university job, and wants to know if he can use them to reduce his taxes payable.
Required:
Determine the tax treatment of Simon's income for 20X1. Apply the four tests within the guidelines used by the courts to determine whether a taxpayer is an employee or an independent contractor.

Question

Quizplus · Accepted Answer

The Answer of Simon Stevens is a high school history teacher. Simon is a national expert in ancient Mayan ruins. In July of 20X1, he was hired by the local university to
teach an elective course in ancient Mayan history. Simon then conducted a field trip of the ruins in Guatemala with some of the local students from July 27th to August 7th. He recruited another local expert to teach his last class that fell
during the dates of the trip.
Simon earned $55,000 from his teaching job. He negotiated a contract price of
$5,000 to teach the university elective and $7,000 to conduct the tour. The
university provided Simon with office space during the month of July. He used his laptop computer to prepare his lectures and the tour material. Additionally, Simon used his extensive collection of books to prepare his notes. He was not provided any benefits or insurance by the university. Simon was paid on July
31st and August 31st.
Simon is not sure how to prepare his tax return. He has a number of expenses
from his university job, and wants to know if he can use them to reduce his taxes payable.
Required:
Determine the tax treatment of Simon's income for 20X1. Apply the four tests within the guidelines used by the courts to determine whether a taxpayer is an employee or an independent contractor.

Simon Stevens Is a High School History Teacher