This week we cover a wide variety of deductions both FOR and FROM Adjusted Gross Income...
This week we cover a wide variety of deductions both FOR and FROM Adjusted Gross Income (AGI). Chose a deduction, provide a brief description of the deduction, and identify whether it is ‘FOR’ or ‘FROM” AGI.
Homework Answers
ANSWER:
There are two types of tax deductions- “Above the line”; and “Below the line”; where the “line” is your Adjusted Gross Income. Deductions for AGI (also known as “Above the line”) can be claimed even if taxpayer does not itemize; however deductions from AGI (also known as “Below the line”) are itemized deductions. The deductions from AGI in total should exceed the standard deduction to provide any tax benefit.
“Above the line” deductions are claimed on Page 1 of Form 1040 and decreases AGI. “Below the line” deductions are claimed on Page 2 of the 1040 and it decreases the taxable income.
For example: The alimony and separate maintenance payments are generally deductible by the payor. Under current rules, this deduction is claimed “above the line” so it decreases adjusted gross income (AGI) for other tax purposes. The payer is not required to itemize to benefit; thus qualifies as “Above the line” deduction.
Add Answer to:
This week we cover a wide variety of deductions both FOR and
FROM Adjusted Gross Income...
Total income $118,000 Excludable income 2,000 Deductions for adjusted gross income 2,500 Deductions from adjusted gross...
Total income $118,000 Excludable income 2,000 Deductions for adjusted gross income 2,500 Deductions from adjusted gross income 8,000 The standard deduction for filing single is $12,000.) Do not round intermediate computations. Round the final tax liability to the nearest cent. Based on the above information, for a single individual, adjusted gross income (AGI) is $, taxable income is $ and the tax liability is $.
Total income $130,200 Excludable income 2,500 Deductions for adjusted gross income 2,700 Deductions from adjusted gross...
Total income $130,200 Excludable income 2,500 Deductions for adjusted gross income 2,700 Deductions from adjusted gross income 13,200 (Hint: The standard deduction for married filing jointly is $24,400.) Do not round intermediate computations. Round the final tax liability to the nearest cent. Refer to the tax rate schedule to calculate the following. Based on the above information, for a couple filing jointly, their adjusted gross income (AGI) is $; taxable income is $; and, their tax liability is $
For AGI Deductions Vs. From AGI Deductions (LO. 6) Reba's 2018 income tax calculation is as...
For AGI Deductions Vs. From AGI Deductions (LO. 6) Reba's 2018 income tax calculation is as follows: Gross income $120,000 Deductions for adjusted gross income (3,000) Adjusted gross income $117,000 Deductions from adjusted gross income: Standard deduction (12,000) (Total itemized deductions are $2,300) Taxable income $105,000 Before filing her return, Reba finds an $8,000 deduction that she omitted from these calculations. Although the item is clearly deductible, she is unsure whether she should deduct it for or from adjusted gross...
Term Answer Description Adjustments A. This is mortgage interest expense. Adjusted gross income B. This is...
Term Answer Description Adjustments A. This is mortgage interest expense. Adjusted gross income B. This is taxed as ordinary income if held less than 12 months. C. Examples of this term include charitable deductions,, state and local taxes, and moving Deductions expenses. D. This is a claim made by the taxpayer for each person supported by the taxpayer's Standard deduction income. Itemized deduction E. This term equals gross income less adjustments. Exemption F. Reduce AGI by the standard deduction and...
Possible Options: Adjusted gross income Adjustments Capital gains tax categories Deductions Exemption Itemized deduction Standard Deduction...
Possible Options:
Adjusted gross income
Adjustments
Capital gains tax categories
Deductions
Exemption
Itemized deduction
Standard Deduction
Steps to AGI
Steps to taxable income
4. Vocabulary - Terminology for components of taxable income Components to Taxable Income Terminology Match the terms relating to the basic terminology and concepts of personal taxation on the right with the descriptions of the terms on the left. (Note: These are not necessarily complete definitions, but there is only one possible answer for each term.) Description...
What are the major tax deductions from adjusted gross income (AGI) that are allowed in calculating...
What are the major tax deductions from adjusted gross income (AGI) that are allowed in calculating taxable income? What are the economic justifications for and consequences of allowing such deductions?
Achoices: Total tax liability owed, Adjusted gross income (AGI), Gross income (all income subject to income...
Achoices: Total tax liability owed, Adjusted gross income (AGI),
Gross income (all income subject to income taxes]
Bchoices: Total personal exemptions, (AGI), Adjustments to
(gross) income
Cchoices: Total tax liability owed, Itemized deductions,
(AGI)
Dchoices: Taxable income Total personal exemptions Total tax
liability owed
E: Taxable income (AGI) Other taxes
F: Other taxes Total personal exemptions Tax credits
G: Tax credits Other credits Tax liability owed
H: Taxable income Total tax liability owed Adjestments to
(gross) income
Ch 03: Assignment...
Hongtao is single and has a gross income of $85,300. His allowable deductions for adjusted gross...
Hongtao is single and has a gross income of $85,300. His allowable deductions for adjusted gross income are $4,300, and his itemized deductions are $19,450. The standard deduction for 2019 is $12,200. Round all amounts to the nearest dollar. Refer to the Tax Rate Schedules to answer the following questions. a. Hangtao's taxable income is $______ and his tax liability is $_______ for 2019. b. If Hongtao has $10,100 withheld from his salary during 2019 then Hongtao has (refund or...
Through November, Cameron has received gross income of $87,500. For December, Cameron is considering whether to...
Through November, Cameron has received gross income of $87,500. For December, Cameron is considering whether to accept one more work engagements for the year. Engagement 1 will generate $7,910 of revenue at a cost to Cameron of $4,250, which is deductible for AGI. In contrast, engagement 2 will generate $9,050 of qualified business income (QBI) which is eligible for the 20% QBI deduction. Cameron files as a single taxpayer Calculate Cameron's taxable income assuming he chooses engagement 1and assuming he...
Through November, Cameron has received gross income of $70,000. For December, Cameron is considering whether to...
Through November, Cameron has received gross income of $70,000.
For December, Cameron is considering whether to accept one more
work engagement for the year. Engagement 1 will generate $8,820 of
revenue at a cost to Cameron of $3,900, which is deductible for
AGI. In contrast, engagement 2 will generate $7,250 of qualified
business income (QBI), which is eligible for the 20 percent QBI
deduction. Cameron files as a single taxpayer.
Calculate Cameron’s taxable income assuming he chooses
engagement 1 and...
For AGI Deductions Vs. From AGI Deductions (LO. 6) Reba's 2018 income tax calculation is as follows: Gross income $120,000 Deductions for adjusted gross income (3,000) Adjusted gross income $117,000 Deductions from adjusted gross income: Standard deduction (12,000) (Total itemized deductions are $2,300) Taxable income $105,000 Before filing her return, Reba finds an $8,000 deduction that she omitted from these calculations. Although the item is clearly deductible, she is unsure whether she should deduct it for or from adjusted gross...
Term Answer Description Adjustments A. This is mortgage interest expense. Adjusted gross income B. This is taxed as ordinary income if held less than 12 months. C. Examples of this term include charitable deductions,, state and local taxes, and moving Deductions expenses. D. This is a claim made by the taxpayer for each person supported by the taxpayer's Standard deduction income. Itemized deduction E. This term equals gross income less adjustments. Exemption F. Reduce AGI by the standard deduction and...
Possible Options:
Adjusted gross income
Adjustments
Capital gains tax categories
Deductions
Exemption
Itemized deduction
Standard Deduction
Steps to AGI
Steps to taxable income
4. Vocabulary - Terminology for components of taxable income Components to Taxable Income Terminology Match the terms relating to the basic terminology and concepts of personal taxation on the right with the descriptions of the terms on the left. (Note: These are not necessarily complete definitions, but there is only one possible answer for each term.) Description...
What are the major tax deductions from adjusted gross income (AGI) that are allowed in calculating taxable income? What are the economic justifications for and consequences of allowing such deductions?
Achoices: Total tax liability owed, Adjusted gross income (AGI),
Gross income (all income subject to income taxes]
Bchoices: Total personal exemptions, (AGI), Adjustments to
(gross) income
Cchoices: Total tax liability owed, Itemized deductions,
(AGI)
Dchoices: Taxable income Total personal exemptions Total tax
liability owed
E: Taxable income (AGI) Other taxes
F: Other taxes Total personal exemptions Tax credits
G: Tax credits Other credits Tax liability owed
H: Taxable income Total tax liability owed Adjestments to
(gross) income
Ch 03: Assignment...
Through November, Cameron has received gross income of $87,500. For December, Cameron is considering whether to accept one more work engagements for the year. Engagement 1 will generate $7,910 of revenue at a cost to Cameron of $4,250, which is deductible for AGI. In contrast, engagement 2 will generate $9,050 of qualified business income (QBI) which is eligible for the 20% QBI deduction. Cameron files as a single taxpayer Calculate Cameron's taxable income assuming he chooses engagement 1and assuming he...
Through November, Cameron has received gross income of $70,000.
For December, Cameron is considering whether to accept one more
work engagement for the year. Engagement 1 will generate $8,820 of
revenue at a cost to Cameron of $3,900, which is deductible for
AGI. In contrast, engagement 2 will generate $7,250 of qualified
business income (QBI), which is eligible for the 20 percent QBI
deduction. Cameron files as a single taxpayer.
Calculate Cameron’s taxable income assuming he chooses
engagement 1 and...
Most questions answered within 3 hours.
-
The English mathematician John Kerrich tossed a coin
10,000 times and obtained 5067 heads.
a. calculate...
asked 1 minute from now -
A process has an input as the flow q gal/min, and an
output temperature T Fahrenheit. Initially,...
asked 4 minutes ago -
A sample of 30 patients in a doctor's office showed that they
had to wait an...
asked 11 minutes ago -
Please write 6 to 10 paragraphs on the risks associated with
digging an underground hole.
Write...
asked 16 minutes ago -
The function x = (7.9 m) cos[(4πrad/s)t + π/3 rad] gives the
simple harmonic motion of...
asked 17 minutes ago -
A sample of steam with a mass of 0.501 g at a temperature of 100
∘C...
asked 50 minutes ago -
I1(t) and I2(t) describe the intensity of two
light waves.
I1(t)= 10sin(30t+π/4)
I2(t)=
10sin(30.4t+π)
Assume that...
asked 45 minutes ago -
True or False: Spinal nerves emerging from the vertebral column
are ONLY motor OR sensory.
Select...
asked 32 minutes ago -
last question i found wrong so downvoted so dont copy
paste or dont try if you...
asked 28 minutes ago -
A block sits on the floor. (a) What is the magnitude of the
frictional force on...
asked 51 minutes ago -
Thanks so much for the help! Please show all work.
A uniform solid disk with radius...
asked 32 minutes ago -
Please use Logicly!
Create a 4 bit sequential counter that is capable of counting up
or...
asked 40 minutes ago