Wanda Is a Single Taxpayer and an Elementary School Teacher

question 50

Essay

Wanda is a single taxpayer and an elementary school teacher. She also tutors students in her home as a small business. During 2019, Wanda purchased $300 in school supplies for her classroom. She also purchased $400 in supplies and materials for her tutoring business. Lastly, she uses a 200 square feet spare bedroom in her house to tutor her clients. Occasionally, her mother also stays in that room during holidays. If Wanda elects to use the simplified method for her home office, what are her deductions that she may claim on her tax return based on the information provided (ignore any income limitations) and where can she claim these deductions?

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Definitions:

Effective

Having an intended or expected outcome; producing a decisive result or effect.

Efficient

Achieving maximum productivity with minimum wasted effort or expense.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to its net income or loss.

Executive Dashboard

A visual presentation tool that provides executives with a quick and easy way to view their company's performance in real-time.