The following represent elements of the tax formula for individual taxpayers: A. Income from any source...

The following represent elements of the tax formula for individual taxpayers: A. Income from any source B. Itemized deductions C. Deductions for AGI D. Exclusions from gross income E. Standard deduction amount Which of the above are subtracted from AGI in the computation of taxable income?

1) B,D, and E
2) B,C, and E
3) B or E
4) C and E or B and C

Solutions

Expert Solution

Items subtracted from adjusted gross income is as follows :-

1. Itemized deductions

2. Deductions for adjusted gross income

3. Standard deduction amount

1. Itemized deductions :- deduction allowed towards particular item like a specific loss or specific expenditure.

This allowed on adjusted gross income.

2. Deductions for adjusted gross income

In the name itself we came to know that these deductions are allowed aganist adjusted gross income.

3. Standard deduction amount

This deduction is deducted before computation of taxable income .

The taxable income is computed after computation of adjusted gross income. Then the standard deduction is allowed aganist adjusted gross income only .

So these 3 deductions are allowed aganist adjusted gross income.

The answer is option 2 that is B,C and E

These are all the information required to solve the given question.

I hope, all the above mentioned explanations and information are useful and helpful to you.

Thank you.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Discuss the classification of individual income taxpayers and the categories of income and tax rates based...

Discuss the classification of individual income taxpayers and the categories of income and tax rates based on latest "Train" Law

any picture of a written contract (from any source) and then show the following elements of...

any picture of a written contract (from any source) and then show the following elements of this contract: 1. The names of the contracting parties. 2. The date and the place of the contract. 3. The subject of the contract. 4. The consideration. 5. The main obligations of the contracting parties. 6. Any other specific terms and conditions.

get any written contract (from any source) and then show the following elements of this contract:...

get any written contract (from any source) and then show the following elements of this contract: 1. The names of the contracting parties. 2. The date and the place of the contract. 3. The subject of the contract. 4. The consideration. 5. The main obligations of the contracting parties. 6. Any other specific terms and conditions.

Are any of the following expenditures deductible on an individual taxpayer’s income tax return? Explain each...

Are any of the following expenditures deductible on an individual taxpayer’s income tax return? Explain each item. Expenditure Amount Cost of having income tax return prepared by a CPA $100 Legal fee for divorce proceeding of which 20 percent related to tax planning advice 3,000 Lost wages for time missed from work while having income tax return prepared 250 Legal fee for estate planning advice of which 35 percent related to tax planning advice 900 Cost of having federal gift tax return prepared by a...

Child Tax Credit (LO 6.1) Calculate the child tax credit for the following taxpayers. Round any...

Child Tax Credit (LO 6.1) Calculate the child tax credit for the following taxpayers. Round any division "up" to the nearest whole number. a. Jeremy is a single (head of household) father with $80,100 of AGI and has a dependent 8-year-old son: $ b. Jerry and Ann have $100,000 of AGI, file jointly, and claim two dependent preschool children: $ c. James and Apple have AGI of $118,250, file jointly, and claim two dependent children (ages 7 and 10): $

alculate the child tax credit for the following taxpayers. Round any division "up" to the nearest...

alculate the child tax credit for the following taxpayers. Round any division "up" to the nearest whole number. a. Jeremy is a single (head of household) father with $80,100 of AGI and has a dependent 8-year-old son: $ b. Jerry and Ann have $100,000 of AGI, file jointly, and claim two dependent preschool children: $ c. James and Apple have AGI of $118,250, file jointly, and claim two dependent children (ages 7 and 10): $

The Tax Formula for Individuals (LO 1.3) Jason and Mary are married taxpayers in 2017. They...

The Tax Formula for Individuals (LO 1.3) Jason and Mary are married taxpayers in 2017. They are both under age 65 and in good health. For 2017 they have a total of $49,400 in wages and $120 in interest income. Jason and Mary's deductions for adjusted gross income amount to $3,815 and their itemized deductions equal $6,080. They claim two exemptions for the year on their joint tax return

What is the tax formula for calculating your tax liability every income year? Write the formula...

What is the tax formula for calculating your tax liability every income year? Write the formula out in full. Explain each element of the tax formula with reference to the relevant provisions of the ITAA97.

explain ethical considerations and legislative requirements relevant to the preparation of tax documentation for individual taxpayers,...

explain ethical considerations and legislative requirements relevant to the preparation of tax documentation for individual taxpayers, including conflict of interest

A study compared the individual pre-tax yearly income earned by residents from two states. The following...

A study compared the individual pre-tax yearly income earned by residents from two states. The following table lists the statistics resulting from this study: Yearly Income Location Sample Size Sample Mean ($'000s) Sample Standard Deviation ($'000s) State A 51 86 19 State B 61 74 26 Calculate the upper and lower bound of the 95% confidence interval of the mean difference (State A - State B) between the income earned by individuals from the two states. Give your answers to...

Subjects