Handout for 1st class Income Tax Accounting Fall 2011

Handout for 1st class Income Tax Accounting Fall 2011 -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
INCOME TAX ACCOUNTING 33:010:421 Fall 2011 Some of the items we will go over during our first class on Thursday, September 1, 2011 TAX FORMULA FOR INDIVIDUAL TAXPAYERS-Shown on Textbook Page 1-11 Income (from whatever source) $XXX, XXX Less: Exclusions from Gross Income . - XX,XXX Gross Income …………………………………………………………….$XXX,XXX Less: Deductions for Adjusted Gross Income*………………………….…. -XX,XXX Adjusted Gross Income (AGI )………………………………………….$XXX,XXX Less: (1) The larger of: (a) standard deduction**………………$X,XXX OR -X, XXX (b) total itemized deductions***…. ..…$X, XXX AND (2) Number of personal and dependency Exemptions multiplied by exemption Amount ($3,700 in 2011, inside text cover -X, XXX Taxable Income ………………………………………………………… XXX, XXX Applicable tax rates**** (From Tables or Schedules X, Y or Z-see inside text cover…………. .…………XX% Gross Tax …………. .………………………………………………. .……$XXX,XXX Less: Tax Credits and Prepayments… ………………………………… -X,XXX Tax due (or Refund )………………………………………………………$ XX,XXX *Taxpayers are permitted deductions for AGI (list not all inclusive) for such items as One-half of the self employment tax of a self employed individual Up to $2,500 of the interest paid on educational loans. Alimony paid to an ex-spouse. Tuition deduction of up to $4,000. Certain moving expenses Self employed person health insurance deduction Individual Retirement Account (IRA) deduction of up to $5,000 **The standard deduction amount (see inside text cover) varies with filing status. The standard deduction amounts for 2011 are as follows:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Handout for 1st class Income Tax Accounting Fall 2011 -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online