The Individual taxable entity is the most common when filing taxes. It is very important that...

The Individual taxable entity is the most common when filing taxes. It is very important that taxpayers know which filing status they should use each year.

Explain why your filing status is important when completing an individual tax return.

List some of the repercussions of incorrectly determining your proper filing status.

State the distinction between above-the-line and below-the-line deductions.

Expert Solution

Filing status is important when completing an individual tax return. This is because filing status has a direct bearing on the tax benefits that an individual will receive. The filing status also impacts the amount of standard deduction and finally the amount of taxes that are paid by an individual. One can file as single, married filing jointly, married filing separately, head of household and qualifying widow(er) with dependent child.

Some of the repercussions of incorrectly determining the proper filing status are that you may increase your tax liability as a result of incorrectly determining the proper filing status. Incorrectly determining the proper filing status may distort the number of deductions available to you, credits and exemptions that you can claim. All this might increase your tax liability.

Above the line deductions are less restrictive in nature than below the line deductions. Above the line deductions help in directly offsetting the income that one reports. This is not possible with below the line deductions. Generally above the line deductions include contributions that are made towards health savings and individual retirement accounts. Below the line deductions include personal and dependent exemptions but these are not affected by AGI. The most important difference is that above the line deductions reduce an individual’s AGI. However below the line deductions does not reduce an individual’s AGI.

ekkarill92 answered 1 year ago

Because it is important for accountants to demonstrate the filing requirements for individual tax returns, for...

Because it is important for accountants to demonstrate the filing requirements for individual tax returns, for this final project you will be completing an individual tax return and then analyzing this experience. There are several requirements for this project that should be submitted during the weeks when there are Portfolio Project Milestones (Modules 2, 3, 4, 5, and 7) and that contribute to your final grade in this project. Key Component: Using the case data from the Case 1, complete...

Using the following table, calculate the taxes for an individual with taxable income of $61,000. 10...

Using the following table, calculate the taxes for an individual with taxable income of $61,000. 10 % Up to $10,100 15 % $10,100–$42,500 25 % $42,500–$99,600 28 % $99,600–$198,400 33 % $198,400–$411,150 35 % Over $411,150

PERSONAL TAXES Mary Jarvis is a single individual who is working on filing her tax return...

PERSONAL TAXES Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: She received $121,000 in salary. She received $10,500 of dividend income. She received $3,500 of interest income on Home Depot bonds. She received $23,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,300. She received $8,000 from the sale of Google stock...

when filing your federal tax return, which will cause taxes to be lower?

When people are heavily in debt, they could consider filing for bankruptcy or individual voluntary arrangement...

When people are heavily in debt, they could consider filing for bankruptcy or individual voluntary arrangement (IVA). Elaborate the impacts of these two arrangements on the debtors’ daily lives.

When operating a business the calculation of taxable income is important as it is the basis...

When operating a business the calculation of taxable income is important as it is the basis for determining the amount of tax that must be paid on the income of the business. How is taxable income computed by the business if it is operated as a "C" corporation, and "S" corporation or a partnership?

When operating a business the calculation of taxable income is important as it is the basis...

When operating a business the calculation of taxable income is important as it is the basis for determining the amount of tax that must be paid on the income of the business. How is taxable income computed by the business if it is operated as a "C" corporation, and "S" corporation or a partnership?

Sourcing has a very important role in the supply chain and one of the most important...

Sourcing has a very important role in the supply chain and one of the most important thing is the Supplier related Issues. Please write at least 3-5 paragraphs about selecting and evaluating suppliers, and how important is that for a business, and how it effect the business. Also, list some examples about some businesses.

Costs are very important not only to us as individual consumers, but also to businesses who...

Costs are very important not only to us as individual consumers, but also to businesses who must control costs in make the desired profit. We should have learned that in this chapter (if we did not already know that). In this discussion answer the following questions (and support your answer(s)): What can cause a firm's cost curves to shift up or down? How would a shift of the cost curves affect a firm's profits? Please answer this question in extreme...

The two most important state taxes are income and general sales taxes, although states also make...

The two most important state taxes are income and general sales taxes, although states also make substantial use of excise taxes, direct business taxes (usually a corporate income tax), and others. List and discuss briefly four factors that might influence a state in choosing between an income and general sales tax. What is the relative reliance in NY state on these two taxes? If the relative reliance in NY state is different than average, speculate about why that might be...

Question

The Individual taxable entity is the most common when filing taxes. It is very important that...

Solutions

Expert Solution

Related Solutions

Because it is important for accountants to demonstrate the filing requirements for individual tax returns, for...

Using the following table, calculate the taxes for an individual with taxable income of $61,000. 10...

PERSONAL TAXES Mary Jarvis is a single individual who is working on filing her tax return...

when filing your federal tax return, which will cause taxes to be lower?

When people are heavily in debt, they could consider filing for bankruptcy or individual voluntary arrangement...

When operating a business the calculation of taxable income is important as it is the basis...

When operating a business the calculation of taxable income is important as it is the basis...

Sourcing has a very important role in the supply chain and one of the most important...

Costs are very important not only to us as individual consumers, but also to businesses who...

The two most important state taxes are income and general sales taxes, although states also make...