Acct 308 Chap3 lesson

Acct 308 Chap3 lesson - CCH Federal Taxation Comprehensive...

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CCH Federal Taxation Comprehensive Topics Chapter 3 Individual Taxation An Overview ©2005, CCH INCORPORATED 4025 W. Peterson Ave. Chicago, IL 60646-6085 800 248 3248 http://tax.cchgroup.com
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CCH Federal Taxation Comprehensive Topics 2 of 42 Federal Tax Formula Gross Income – Deductions for Adjusted Gross Income = Adjusted Gross Income – Greater of Itemized Deductions or Standard Deduction – Personal Exemptions = Taxable Income x Tax Rate = Tax Liability + Alternative Minimum Tax (if any) – Tax Credits and Prepayments + Employment Taxes (if any) = Net Tax Due or Refund Chapter 3, Exhibit 1
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CCH Federal Taxation Comprehensive Topics 3 of 42 Classification of Taxpayers Type of Return Form Individual 1040 Corporation 1120 Fiduciary 1041 Partnership 1065 Filed By Every Natural person with income of statutory minimums Corporations, including organizations taxed as corporations Trusts and estates with income in excess of statutory minimums Partnerships or joint ventures (information return only) Chapter 3, Exhibit 2
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CCH Federal Taxation Comprehensive Topics 4 of 42 Filing Status Married individuals filing jointly Married individuals filing separate returns Single individuals Heads of households Surviving spouses Chapter 3, Exhibit 3
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CCH Federal Taxation Comprehensive Topics 5 of 42 Computing Tax Liability $25,810.50 10% x ($7,300 $0) = $730.00 15% x ($29,700 – $7,300) = $3,360.00 25% x ($71,950 $29,700) = $10,562.50 28% x ($111,800 $71,950) = $11,158.00 $ 111,800 $ 3,200 $ 5,000 $120,000 Single Taxable Income (TI) Standard Deduction (SD) Personal Exemption (PE) Adjusted Gross Income (AGI) Federal Tax Liability Computation of Tax Liability Computation of Taxable Income Filing Status Chapter 3, Exhibit 4a
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CCH Federal Taxation Comprehensive Topics 6 of 42 Computing Tax Liability Chapter 3, Exhibit 4b $19,230.00 10% x ($14,600 – $ 0) = $1,460.00 15% x ($59,900 $14,600) = $6,720.00 25% x ($103,600 $59,400) = $11,050.00 $103,600 $6,400 (2 x $3,200) $10,000 $120,000 Married Filing Jointly and Surviving Spouse Taxable Income (TI) Standard Deduction (SD) Personal Exemption (PE) Adjusted Gross Income (AGI) Federal Tax Liability Computation of Tax Liability Computation of Taxable Income Filing Status
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CCH Federal Taxation Comprehensive Topics 7 of 42 Computing Tax Liability Chapter 3, Exhibit 4c $27,189.75 10% x ($7,300 – $0) = $730.00 15% x ($29,700 $7,300) = $3,360.00 25% x ($59,975 $29,700) = $7,568.75 28% x ($91,400 $59,975) = $8,799.00 33% x ($111,800 $91,400) = $6,732.00 $111,800 $3,200 $5,000 $120,000 Married Filing Separately Taxable Income (TI) Standard Deduction (SD) Personal Exemption (PE) Adjusted Gross Income (AGI) Federal Tax Liability Computation of Tax Liability Computation of Taxable Income Filing Status
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CCH Federal Taxation Comprehensive Topics 8 of 42 Computing Tax Liability Chapter 3, Exhibit 4d $23,073.50 10% x ($10,450 – $0) = $1,045.00 15% x ($39,800 – $10,450) = $4,402.50
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This homework help was uploaded on 04/09/2008 for the course ACCT Acct 308 taught by Professor Lau during the Summer '06 term at CSU Fullerton.

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Acct 308 Chap3 lesson - CCH Federal Taxation Comprehensive...

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