Taxes_F09_2.key - Wealth is not what we make its what we...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Wealth is not what we make… it’s what we KEEP! Tax Planning Tax Issues for FCE 238 • Tax-Deferred • Tax Deductions • Taxable Income and • Marginal Tax Rates • Tax Credits What is income? • Wages, tips • Interest (taxable, not tax exempt) • Dividends (ordinary, not qualified) • Retirement $$ • Capital Gains • Unemployment What is income?? • 1. Total • 2. Gross • 3. Adjusted Gross • 4. Taxable 1. Reduce your “TOTAL” income • Reduce your income before your paycheck……. Pre - Tax dollars • Income tax is not paid on the investment THIS YEAR. • Sometimes referred to as using Pre-Tax dollars. Examples: • 401(k) type investments • Dependent care accounts
Background image of page 1

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

View Full DocumentRight Arrow Icon
2. Reduce your “Gross” Income • Reduce your income before tax is computed…. . 09 Tax Deductions (reductions of income) • Lines 23 -35 on 1040 • Educator Expenses ($250 max) • Health Savings Accts. • Moving expenses • IRA deduction ($5,000 max - $65,000- S $120,000 MFJ) • Student Loan Interest! (max $2,500 - $105,000 -S $135,000 - MFJ) • Tuition and Fees (Max $4,000 - $70,000 -S $145,000-MFJ) • Etc. IClicker _____ Maxine Marshall received $26,000 as a beneficiary of a Roth IRA. How much of the $26,000 is included in Maxine’s gross income? a. $26,000 b. $13,000 c. $6,500 d. $0 3. Reduce your Adjusted Gross Income - AGI • Exemptions • Standard or Itemized Deductions • Personal Exemption Stays with the claim of dependent. $3650. Standard Deduction or Itemized Deductions? Stays with the taxpayer. $5,700. Single $11,400. MFJ More Tax Deductions (reductions of income)
Background image of page 2
Itemized Deductions (Schedule A) • Medical expenses (over 7.5%) • Taxes paid (state, local, real estate) • Interest paid (mortgage) • Charity
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

Taxes_F09_2.key - Wealth is not what we make its what we...

This preview shows document pages 1 - 4. Sign up to view the full document.

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