Accounting 12-2

Accounting 12-2 - What is his taxable income? $39,250 Tax...

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ACCOUNTING 2000 12/2/11 REVIEW SESSION: SUNDAY, 4-5:30, DODSON Income tax model Gross income -deductions for adjusted gross income =adjusted gross income -standard deduction or itemized deduction -exemptions =taxable income X tax rate =tax liability +other taxes =total tax Itemized deductions -medical -taxes -interest -charitable contributions (ceiling of 50% AGI) -casualty and theft losses (floor of 10% AGI) -MISC. (floor of 2% of AGI); examples: tax preparation fee, investment expenses, gambling losses Ex) which are charitable contributions? Contributions to church, yes Contribution of clothing to Salvation Army, yes Cash given to a homeless man, no CLICKER: Mike T is 67 and single. His income is $50,000. He has no itemized deductions.
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Unformatted text preview: What is his taxable income? $39,250 Tax rate (know these for the final) 10%, 15%, 25%, 28%, 33%, 35% MISC. Filing requirements-for most people: Standard deduction and personal exemptions-for children and other dependents: Unearned income only and total of unearned income > 950 + ASD No unearned income and total income > 5700 + ASD Total income is greater than higher of $950 or unearned income plus $300 When to file:-April 15 th-October 15 th CLICKER: T-Mike is 16 and is claimed by Mike T. T-Mike earned $3500 for selling programs. Is he required to file a return? No...
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Accounting 12-2 - What is his taxable income? $39,250 Tax...

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