33 - 39. What six criteria must a taxpayer meet in order to...

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38. What is the Income Tax Formula? Answer: The income tax formula is the methodology used to determine the amount of tax owed by a taxpayer. In its most simplified form, the income tax formula is: Income − Permitted Deductions from Income -------------------------------- = Taxable Income × Appropriate Tax Rates -------------------------------- = Tax Liability − Tax Payments and Tax Credits --------------------------------- = Tax Refund or Tax Due with Return
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Unformatted text preview: 39. What six criteria must a taxpayer meet in order to file a Form 1040EZ? Answer: In order to use a 1040EZ, a taxpayer must meet the following criteria: file the return as either single or married, be under age 65, have no dependents, have total taxable income under $100,000, have taxable interest income less than $1,500, and claim no tax credits except for the Earned Income Credit....
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This note was uploaded on 09/16/2011 for the course ACCOUNTING 145 taught by Professor Eric during the Spring '11 term at Palm Beach Community College.

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33 - 39. What six criteria must a taxpayer meet in order to...

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