Accounting Notes- Day 24

Accounting Notes- Day 24 - Total: $12500 Example: MFJ...

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ACCOUNTING 11/29/11 Deductions for adjusted gross income: -IRA contributions -self-employed health insurance premiums -one half of self-employment tax -Keogh contributions -penalty on early withdrawal of savings -alimony payments -moving expenses -student loan interest -tuition and fees (post-secondary) Standard deduction is based on your filing status: -single: $5,700 -married filing jointly: $11,400 -married filing separate: $5,700 -head of household: $8,400 -qualifying widow: $11,400 *additional amounts for old age and blindness ($1100 if MFJ; $1400 if S) Example: MFJ $11400 Taxpayer (67 yr old) $1100 Spouse (64 yr old)
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Unformatted text preview: Total: $12500 Example: MFJ $11400 Taxpayer (90 yr old) $1100 Blind, spouse (24 yr old) $1100 Total: $13,600 Standard deduction amount for an individual who may be claimed as a dependent by another taxpayer may not exceed the greater of $950 or sum of $300 and the individuals earned income Example: Dependent of another taxpayer Wages $3000 Standard deduction $3300 ($3000 + 300) > $950 Total: $300 Example: Interest $1000 Standard deduction $950 ($0 + $300) < $950 Total: $50 CLICKER: Mike is a 67 yr old single and blind. What is the standard deduction? 5700+1400+1400= $8500...
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Accounting Notes- Day 24 - Total: $12500 Example: MFJ...

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