AC 750 Chapter 4

AC 750 Chapter 4 - Chapter 4 al Ta vidu Indi mula For x...

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I n d i v u a l T x F o r m Chapter 4 Preparing my tax return is too difficult for a mathematician. It takes a philosopher. ~Albert Einstein
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AC 750 - Chapter 4 2   G ro s s  Inc o m e *  §61 G ro s s  Inc o m e *  § 61                      - De duc tio ns   fo r AG I Adjus te d G ro s s  Inc o m e - De duc tio ns   (§ 162)   - S ta nda rd  o r   Ite m ize d      de duc tio n                             - Exe m ptio ns Ta xa b le  Inc o m e   Ta xa b le  Inc o m e x  Ta x Ra te s   x  Ta x Ra te s G ro s s  Ta x  G ro s s  Ta x - C re dits  & Pa ym e nts   - C re dits  &  Pa ym e nts Ta x Due /Re fund  Ta x Due /Re fund Ta x  Fo rm ulas Business Individual Ta x Ba s e * Does not include income excluded from income
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AC 750 - Chapter 4 3 De duc tio n “Fro m ” vs . “Fo r” AG I Why is  the re  a  dis tinc tio n a nd why do  we  c a re ? “Fo r” AG I - is  prim a rily b us ine s s  e xpe ns e s a nd s pe c ia l ite m s        - is  no t lim ite d b y a  m inim um o r m a xim um  a m o unt “Fro m ” AG I – s ta nda rd o r ite m ize d de duc tio n AG I is  us e d to  c a lc ula te  o the r lim its  o n the  re turn ABOVE BELOW The “line”
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AC 750 - Chapter 4 4 De duc tio ns  “fo r” AG I De duc tio n fro m  g ro s s  inc o m e  to  c alc ula te  AG I. Individua ls  o nly; c e rtain pe rs o na l e xpe nditure   de duc tio ns  c la s s ifie d he re  ra the r tha n a s  a n ite m ize d de duc tio n. Mo s t c o m m o n de duc tio ns :  Bus ine s s  e xpe ns e s  Re nta l pro pe rty e xpe ns e s  Alim o ny pa id  Mo ving  e xpe ns e s  S tude nt lo a n inte re s t  IRA c o ntrib utio ns
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AC 750 - Chapter 4 5
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AC 750 Chapter 4 - Chapter 4 al Ta vidu Indi mula For x...

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