A100Taxation

A100Taxation - Income Statement Prepared for the IRS Gross...

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Income Statement Prepared for the IRS Gross Income = Gross Income Recognized - Cost of Goods Sold - Depreciation Expense - Most expenses that appear on = Taxable Income This number is multiplied by tax rates Tax credits are then subtracted to get Example of a Tax Rate Schedule ($ amounts in thousands) Taxable Tax Liability is: of taxable Income Range This amount + This % income over 0-$50 $0 + 15% $0 $50-$75 $7.50 + 25% $50 $75-$100 $13.75 + 34% $75 $100-$335 $22.25 + 39% $100 $335-$10,000 $113.90 + 34% $335 $10,000-$15,000 $3,400.00 + 35% $10,000 $15,000-$18,333 $5,100.00 + 38% $15,000 $18,333 $6,416.00 + 35% $18,333 So, taxable income of: = Tax Liability 0-$50 $10 $1.50 $50-$75 $60 $10.00 $75-$100 $75 $13.75 $100-$335 $110 $26.15 $335-$10,000 $335 $113.90 $10,000-$15,000 $10,000 $3,400.00 $15,000-$18,333 $15,000 $5,100.00 $18,333 $18,333 $6,416.00 It is important, for A100, to be able to discern among exclusions, deductions, and credits! Less
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This note was uploaded on 02/24/2011 for the course ECON 302 taught by Professor Prof.ds during the Summer '09 term at Harvard.

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A100Taxation - Income Statement Prepared for the IRS Gross...

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