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Unformatted text preview: adjusted gross income in calculating taxable income. Itemized deductions are an alternative to the standard deduction in which the taxpayer reports and deducts actual expenses in certain allowed categories to arrive at taxable income. You should use itemized deductions if your annual expenses in certain categories exceed the standard deduction for your filing status. You should use form Schedule A. 24. The alternative minimum tax is federal income tax calculations designed to ensure that people who receive certain tax breaks pay their fair share of taxes. 34. An audit is a process by which the IRS more carefully examines particular tax returns for errors and omissions. Audit triggers include suspicious characteristics of income, deductions that have been correlated with fraud in the past....
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This homework help was uploaded on 04/18/2008 for the course FNPL 101 taught by Professor Linck during the Spring '07 term at Howard County Community College.
- Spring '07