Question

In: Accounting

1. List tax -deductible expenditures and the deductible amount 2. Below the list of deductible expenses...

1. List tax -deductible expenditures and the deductible amount

2. Below the list of deductible expenses , re-configure your taxes and net income : Subtract your deductible expenses from your gross income to determine your Gross Income (AGI ). Then recalculate your taxes based on the AGI.

3. Subtract your taxes from your Gross Income to determine your updated net income .

Please use formulas for your calculations

Tax calculations should be listed for each type of tax

there is no more stuff

Solutions

Expert Solution

Tax Deductions:
1. American Opportunity Tax Credit
The AOTC is for first-time college students for their first four years of college or other higher education. If you're pursuing a degree or otherwise going to college and haven't had a felony drug conviction at the end of the tax year, you could qualify.
2. Lifetime Learning Credit
While the AOTC is for first-time college students, the Lifetime Learning Credit is for others pursuing higher education.
3. Earned Income Tax Credit
If you make low-to-moderate income, the Earned Income Tax Credit reduces the amount of tax you owe. Or it could give you a refund (or increase it).
4. Child and Dependent Care Credit
If you care for a child or another dependent in your household, you could claim this credit. The total expenses can't exceed $3,000 for one individual or $6,000 for two or more dependents.
5. Saver's Credit
If you make eligible contributions to your Individual Retirement Account or your employer-sponsored retirement plan -- like a 401(k) --
you may qualify for the Saver's Credit. You must be 18 years of age or older, not a full-time student and can't be claimed as a
dependent on another person's tax returns. The credit rate varies depending on your adjusted gross income,
but you won't earn anything if you earn more than $64,000 if you're married filing jointly or more than $32,000 as another filer.

Related Solutions

1. List tax -deductible expenditures and the deductible amount 2. Below the list of deductible expenses...
1. List tax -deductible expenditures and the deductible amount 2. Below the list of deductible expenses , re-configure your taxes and net income : Subtract your deductible expenses from your gross income to determine your Gross Income (AGI ). Then recalculate your taxes based on the AGI. 3. Subtract your taxes from your Gross Income to determine your updated net income . Please use formulas for your calculations Tax calculations should be listed for each type of tax no more...
In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible...
In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor from AGI before considering income limitations or the standard deduction. (Leave no answers blank. Enter zero if applicable.) a. Fran spent $90 for uniforms for use on her job. Her employer reimbursed her for $75 of this amount under an accountable plan (and did not report the reimbursement as wages). Deductible for AGI $_________ Deductible from...
1. Which of the following expenses, if any, qualify as deductible for Federal income tax purposes?...
1. Which of the following expenses, if any, qualify as deductible for Federal income tax purposes? a. Contribution to a Roth IRA. b. Contribution to a traditional IRA c. Contributions to a Coverdell Education Savings Account. . d. Contributions to a qualified tuition program (§ 529 plan) 2. If a residence is used primarily for personal use (rented for fewer than 15 days per year), which of the following is correct? a. No expenses are deductible. b. No income is...
1.) What medical expenses are deductible? -travel expenses 2.) What qualifies as an itemized deduction -allowable...
1.) What medical expenses are deductible? -travel expenses 2.) What qualifies as an itemized deduction -allowable taxes -allowable charitable contributions -allowable casualty and loss deductions 3.) What are the rules for the kiddie tax? 4.) who is allowed to deduct FICA taxes 5.) What qualifies as a marriage penalty? 6.)calculate the net investment tax liability 7.) What is the difference between a working taxpayer and an independent contractor? 8.) What does “ordinary and necessary” mean in the context of business...
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...
In each of the following independent cases,indicate the amount (1) deductible for AGI,(2) deductible from AGI,and...
In each of the following independent cases,indicate the amount (1) deductible for AGI,(2) deductible from AGI,and (3) neither deductible for nor deductible from AGI before considering income limitations or the standard deduction..(Leave no answer blank.Enter zero if applicable.) a.Fran spent $142 for uniforms for use on her job.Her employer reimbursed her for $115 of this amount under an accountabe plan (and did not report the reimbursement as wages). b.Timothy,a plumber employed by ACE Plumbing,spent $123 for sma Itoo S to...
   ($ in millions) Carrying Amount Tax Basis Future Taxable (Deductible) Amount Buildings and equipment (net...
   ($ in millions) Carrying Amount Tax Basis Future Taxable (Deductible) Amount Buildings and equipment (net of accumulated depreciation) $ 128 $ 94 $ 34 Prepaid insurance 54 0 54 Liability—loss contingency 29 0 (29 ) No temporary differences existed at the beginning of 2018. Pretax accounting income was $204 million and taxable income was $145 million for the year ended December 31, 2018. The tax rate is 40%. Required: 1. Complete the following table given below and prepare the...
Which of the following expenses are deductible, but subject to the 2% limitation on Form 1040,...
Which of the following expenses are deductible, but subject to the 2% limitation on Form 1040, Schedule A. Job Expenses and Most Other Miscellaneous Itemized Deductions? License of a self-employed plumber. Appraisal fees on the sale of your personal residence. Protective gear required to work in a chemistry lab. The cost of hauling tools to work in the trunk of your car.
TRUE / FALSE 1. Both interest expense and dividends are tax deductible 2. The APR (or...
TRUE / FALSE 1. Both interest expense and dividends are tax deductible 2. The APR (or “nominal rate”) is always equal to the equivalent annual rate (EAR) 3. Companies often go public to raise capital for expansion 4. The three types of cash flows on the Statement of Cash Flows are operating, investing and financing. 5. Equity holders have unlimited upside, while bondholders can only get their coupon    payments and face value of the bond as returns. 6. Both operating...
In the deferred tax worksheet, can you explain the concepts of calculating the future deductible amount...
In the deferred tax worksheet, can you explain the concepts of calculating the future deductible amount of plant/ equipment? Is it just cost minus the accumulated depreciation of plant/ equipment (Tax) ?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT