AC 750 Chapter 7

AC 750 Chapter 7 - Chapter 7 Finalizing The Tax Formula...

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Chapter 7 Finalizing The Tax Formula
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AC 750 - Chapter 7 2 Individual Gross Tax Liability  Calculation Use Tax Tables or Tax Rate Schedule Tax Due/Refund = Gross Tax Liability – prepayments Kiddie Tax – Applies to: Children under age 19 (or 24 if a full-time student) With at least one living parent And unearned income over $1,900 (2010) Net unearned income is taxed at the parent’s rate.
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AC 750 - Chapter 7 3 Alternative Minimum Tax (AMT) Regular Taxable Income + exemptions + standard deduction +/- other adjustments (itemized taxes, portion itemized          medical, misc. itemized) Alternative minimum taxable income - AMT exemption AMT Tax Base AMT rate Tentative Minimum Tax - Regular Tax AMT
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AC 750 - Chapter 7 4 Deductible Business Expenses Employee Self-Employed “From AGI” Miscellaneous Itemized deduction “For”AGI Employee or independent contractor? Control, risk, payment, hours, independence
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AC 750 - Chapter 7 5 Self-Employment Tax (SET) SET Base  = Net SE earnings x 92.35%
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This note was uploaded on 03/19/2012 for the course ACC 750 taught by Professor Tracynoga during the Spring '12 term at Bentley.

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AC 750 Chapter 7 - Chapter 7 Finalizing The Tax Formula...

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