Q1. Under US, income tax law deductions are Classifying into Deductions for and deductions from adjusted...
Q1. Under US, income tax law deductions are Classifying into Deductions for and deductions from adjusted gross income. Discuss in detail the items of each kind. (2 marks)
Homework Answers
Deduction for AGI is a deduction that allows a taxpayer to subtract from his gross income to arrive at AGI. For example, Health savings account deduction, Student loan interest deduction, Self-employment deductions, Alimony deduction etc.
Deduction from AGI include any deduction reported on a line that comes after the AGI calculation on a return. For example, charitable donations and medical, tax, interest, and miscellaneous expenses
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Q1. Under US, income tax law deductions are Classifying
into Deductions for and deductions from adjusted...
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 $
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?
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...
Question 6: i) Generally, deductions FOR adjusted gross income on an individual's tax return include all...
Question 6: i) Generally, deductions FOR adjusted gross income on an individual's tax return include all the following types of expenses except those: A) incurred in gambling activities. B) incurred in a trade or business. C) incurred in the production of rent income. D) incurred in the production of royalty income. ii) In 2019, Sean, who is single and age 44, received $55,000 of gross income and had $5,000 of deductions for AGI and $12,600 of itemized deductions. Sean's taxable...
Which of the following is true? a. Under the Federal income tax formula for individuals, the...
Which of the following is true? a. Under the Federal income tax formula for individuals, the determination of adjusted gross income (AGI) precedes that of taxable income. b. Under the Federal income tax formula for individuals, a choice must be made between claiming deductions for AGI and itemized deductions. c. Under the Federal income tax formula for individuals, the choice must be made between claiming deductions for AGI and the standard deduction. d. Under the Federal income tax formula for...
The income tax base for an individual tax return is: Multiple Choice :50:31 C ) Adjusted...
The income tax base for an individual tax return is: Multiple Choice :50:31 C ) Adjusted gross income minus from AGI deductions. O Gross income. Realized income from whatever source derived. Adjusted gross income. Nort
What typw of deductions is directly deducted from the Gross Income? Deductions for AGI Tax Exempt...
What typw of deductions is directly deducted from the Gross Income? Deductions for AGI Tax Exempt income Tax credit itemized deductions
1. a. gross income b. total tax liability owned c. adjusted gross income 2 a. total...
1. a. gross income
b. total tax liability owned
c. adjusted gross income
2 a. total personal exemptions
b. adjustments to income
c. adjusted gross income (AGI)
3 a. Itemized deductions
b. adjusted gross incomte
c. total tax liability owned
4 a. taxable income
b. total tax liability owned
c. total personal exemptions
5 a. taxable income
b. adjusted gross income
c. other taxes
6 a. other taxes
b. total personal exemptios
c. tax credits
7 a. total tax liability...
describe the general types of deductions that are allowed by the federal tax code. What is...
describe the general types of deductions that are allowed by the federal tax code. What is the difference between deductible for adjusted gross income versus deductible from adjusted gross income. Why is this important?
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?
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...
The income tax base for an individual tax return is: Multiple Choice :50:31 C ) Adjusted gross income minus from AGI deductions. O Gross income. Realized income from whatever source derived. Adjusted gross income. Nort
1. a. gross income
b. total tax liability owned
c. adjusted gross income
2 a. total personal exemptions
b. adjustments to income
c. adjusted gross income (AGI)
3 a. Itemized deductions
b. adjusted gross incomte
c. total tax liability owned
4 a. taxable income
b. total tax liability owned
c. total personal exemptions
5 a. taxable income
b. adjusted gross income
c. other taxes
6 a. other taxes
b. total personal exemptios
c. tax credits
7 a. total tax liability...
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