Ch3 Transcripcion

Ch3 Transcripcion - uctions are taken when the expense is...

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ductions are taken when the expense is paid. The accrual method requires income to be reported when all the events necessary to fix the rig Adjusted Gross Income Greater of Itemized Deductions or Standard Deduction Personal Exemptions Taxable Income Tax Rate Tax Liability Tax Credits and Prepayments Net Tax Due or Refund and annuities. An individual's income from business is included in gross income after deducting the cost of goods sold. es referred to as "business deductions." These deductions are discussed in Chapter 6. usted gross income is an important subtotal because certain other items are based on the amount of adjusted gross income. The credit for 1[3025
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uded in this group are: medical expenses, state and local income taxes, property taxes, home mortgage interest, charitable contributions, pers o n. The standard deduction is a fixed amount used to simplify the computation of the tax liability. It is also designed to eliminate eduction" plus any "additional standard deduction." The standard deduction is adjusted annually, if necessary, for inflation. Filing Status Basic Standard Deduction 2011 Single $5,800 Married Filing Jointly 11,600 Married Filing Separately 5,800 Head of Household 8,500 Surviving Spouse 11,600 ductions of $10,500. usually more than the total itemized deductions, which means that such taxpayers need not report their itemized deductions. Thus, th educe the amount allowable for itemized deductions by 3 percent of the excess over that threshold. For 2011 and 2012, there is no reduction e additional amounts allowed for age and blindness. The dollar value of an additional amount will depend on the taxpayer's filing status. The Dollar Value of One Additional Filing Status Amount 2011 Single $1,450 Married Filing Jointly 1,150 Married Filing Separately 1,150 Head of Household 1,450 Surviving Spouse 1,150 13035
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Individual Taxation-An Overview 3- 5 e an additional standard deduction of $4,600 ($1,150 x 4). deduction. n additional standard deduction of $2,900 ($1,450 for her age and $1,450 for her blindness). Her total standard deduction is $11,400. nal standard deduction of $3,450 ($1,150 x 2 for their age plus $1,150 for Donna's blindness). Their total standard deduction is $15,050. age additional standard deduction, an individual attains the age of 65 on the day preceding the 65th birthday. Thus, an individual whose 65th birthday falls on January 1 in e s, or if visual acuity is greater than 20/200 but is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an ang h. Thus, the additional standard deduction for age will not be allowed for an individual who dies before attaining the age of 65 even though the individual would hav amounts are allowed to taxpayers who claim an exemption for dependents who are aged or blind. 011. Darren may claim a dependency exemption for his father but may not claim the additional standard deduction amount for his dependent father.
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Ch3 Transcripcion - uctions are taken when the expense is...

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