federal income tax chapter 2. © copyright 2013 by m. ray gregg. all rights reserved. 2 filing...
TRANSCRIPT
© Copyright 2013 by M. Ray Gregg. All rights reserved.
2
Filing Status
For each of the following situations, can Hank and Wynona file a joint return for 20x1? Explain.
© Copyright 2013 by M. Ray Gregg. All rights reserved.
3
Filing Status
Hank and Wynona married on December 20, 20x1, after a whirlwind courtship. On December 28, 20x1, following a violent argument, Wynona packed off home to mother, vowing never to return. No legal action was taken during 20x1.Yes.
Married on lastday of year.
© Copyright 2013 by M. Ray Gregg. All rights reserved.
4
Filing Status
Hank and Wynona, after years of marriage, were separated under an interlocutory (not final) decree of divorce on December 30, 20x1.
Yes.
Not considered
divorced until final.
© Copyright 2013 by M. Ray Gregg. All rights reserved.
5
Filing Status
Hank, while on temporary assignment in England for a large corporation, married Wynona, a citizen of Great Britain. They were still in London at the end of 20x1, but they return to the United States in January 20x2. They made no election for 20x1 to include Wynona’s worldwide income on a U.S. tax return.
No,
but they could if they claimed
her WW income.
© Copyright 2013 by M. Ray Gregg. All rights reserved.
6
Filing Status
Hank died on January 2, 20x1, after years of marriage to Wynona. Wynona did not remarry.
Yes.
© Copyright 2013 by M. Ray Gregg. All rights reserved.
7
Filing Status
For each of the following situations, a) state Hank’s and b) state Wynona’s filing status for 20x1?
© Copyright 2013 by M. Ray Gregg. All rights reserved.
8
Filing Status
Hank and Wynona were divorced on January 14, 20x1. They have no children or other dependents, and they did not remarry during the year.
Hank = Single
Wynona = Single
© Copyright 2013 by M. Ray Gregg. All rights reserved.
9
Filing Status
Hank and Wynona separated (not by decree) in May 20x1. They agreed Hank would claim the children as dependents. Wynona provided a home for them. Hank and Wynona will not file as married filing jointly.
Hank = Married Filing Separate
Wynona = Head of Household
© Copyright 2013 by M. Ray Gregg. All rights reserved.
10
Filing Status
Hank and Wynona separated (not by decree) in August 20x1. Wynona provided a home and support for the children. They will not file as married filing jointly.
Hank = Married Filing Separate
Wynona = Married Filing Separate
© Copyright 2013 by M. Ray Gregg. All rights reserved.
11
Head of Household and Surviving Spouse
• Problem 2 – 44– Allen?
• Yes– Beth?
• No• Aunt must live
with TP– Cindy?
• Consider some other situations
© Copyright 2013 by M. Ray Gregg. All rights reserved.
12
X1
H W
Filing Status?
# exm?
Std Ded?
Rate Sch?
Situation 1
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13
X1
H W C(15)
Filing Status?
# exm?
Std Ded?
Rate Sch?
Situation 1
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14
X1
H W C(15)
Filing Status?
MFJ
# exm?
Std Ded?
Rate Sch?
Situation 1
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15
X1
H W C(15)
Filing Status?
MFJ
# exm?
3
Std Ded?
Rate Sch?
Situation 1
© Copyright 2013 by M. Ray Gregg. All rights reserved.
16
X1
H W C(15)
Filing Status?
MFJ
# exm?
3
Std Ded?
$12,200
Rate Sch?
Situation 1
© Copyright 2013 by M. Ray Gregg. All rights reserved.
17
X1
H W C(15)
Filing Status?
MFJ
# exm?
3
Std Ded?
$12,200
Rate Sch?
Y-1
Situation 1
© Copyright 2013 by M. Ray Gregg. All rights reserved.
18
X1 X2
H W C(15)
H W C
Filing Status?
MFJ
# exm?
3
Std Ded?
$12,200
Rate Sch?
Y-1
Situation 2
© Copyright 2013 by M. Ray Gregg. All rights reserved.
19
X1 X2
H W C(15)
H W C
Filing Status?
MFJ MFJ
# exm?
3
Std Ded?
$12,200
Rate Sch?
Y-1
Situation 2
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20
X1 X2
H W C(15)
H W C
Filing Status?
MFJ MFJ
# exm?
3 3
Std Ded?
$12,200
Rate Sch?
Y-1
Situation 2
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21
X1 X2
H W C(15)
H W C
Filing Status?
MFJ MFJ
# exm?
3 3
Std Ded?
$12,200
$12,200
Rate Sch?
Y-1
Situation 2
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22
X1 X2
H W C(15)
H W C
Filing Status?
MFJ MFJ
# exm?
3 3
Std Ded?
$12,200
$12,200
Rate Sch?
Y-1 Y-1
Situation 2
© Copyright 2013 by M. Ray Gregg. All rights reserved.
23
X1 X2 X3
H W C(15)
H W C
W C
Filing Status?
MFJ MFJ
# exm?
3 3
Std Ded?
$12,200
$12,200
Rate Sch?
Y-1 Y-1
Situation 3
© Copyright 2013 by M. Ray Gregg. All rights reserved.
24
X1 X2 X3
H W C(15)
H W C
W C
Filing Status?
MFJ MFJ SS
# exm?
3 3
Std Ded?
$12,200
$12,200
Rate Sch?
Y-1 Y-1
Situation 3
© Copyright 2013 by M. Ray Gregg. All rights reserved.
25
X1 X2 X3
H W C(15)
H W C
W C
Filing Status?
MFJ MFJ SS
# exm?
3 3 2
Std Ded?
$12,200
$12,200
Rate Sch?
Y-1 Y-1
Situation 3
© Copyright 2013 by M. Ray Gregg. All rights reserved.
26
X1 X2 X3
H W C(15)
H W C
W C
Filing Status?
MFJ MFJ SS
# exm?
3 3 2
Std Ded?
$12,200
$12,200
$12,200
Rate Sch?
Y-1 Y-1
Situation 3
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27
X1 X2 X3
H W C(15)
H W C
W C
Filing Status?
MFJ MFJ SS
# exm?
3 3 2
Std Ded?
$12,200
$12,200
$12,200
Rate Sch?
Y-1 Y-1 Y-1
Situation 3
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28
X1 X2 X3 X4
H W C(15)
H W C
W C
W C
Filing Status?
MFJ MFJ SS
# exm?
3 3 2
Std Ded?
$12,200
$12,200
$12,200
Rate Sch?
Y-1 Y-1 Y-1
Situation 4
© Copyright 2013 by M. Ray Gregg. All rights reserved.
29
X1 X2 X3 X4
H W C(15)
H W C
W C
W C
Filing Status?
MFJ MFJ SS SS
# exm?
3 3 2
Std Ded?
$12,200
$12,200
$12,200
Rate Sch?
Y-1 Y-1 Y-1
Situation 4
© Copyright 2013 by M. Ray Gregg. All rights reserved.
30
X1 X2 X3 X4
H W C(15)
H W C
W C
W C
Filing Status?
MFJ MFJ SS SS
# exm?
3 3 2 2
Std Ded?
$12,200
$12,200
$12,200
Rate Sch?
Y-1 Y-1 Y-1
Situation 4
© Copyright 2013 by M. Ray Gregg. All rights reserved.
31
X1 X2 X3 X4
H W C(15)
H W C
W C
W C
Filing Status?
MFJ MFJ SS SS
# exm?
3 3 2 2
Std Ded?
$12,200
$12,200
$12,200
$12,200
Rate Sch?
Y-1 Y-1 Y-1
Situation 4
© Copyright 2013 by M. Ray Gregg. All rights reserved.
32
X1 X2 X3 X4
H W C(15)
H W C
W C
W C
Filing Status?
MFJ MFJ SS SS
# exm?
3 3 2 2
Std Ded?
$12,200
$12,200
$12,200
$12,200
Rate Sch?
Y-1 Y-1 Y-1 Y-1
Situation 4
© Copyright 2013 by M. Ray Gregg. All rights reserved.
33
X1 X2 X3 X4 X5
H W C(15)
H W C
W C
W C
W C
Filing Status?
MFJ MFJ SS SS
# exm?
3 3 2 2
Std Ded?
$12,200
$12,200
$12,200
$12,200
Rate Sch?
Y-1 Y-1 Y-1 Y-1
Situation 5
© Copyright 2013 by M. Ray Gregg. All rights reserved.
34
X1 X2 X3 X4 X5
H W C(15)
H W C
W C
W C
W C
more assmptns?
Filing Status?
MFJ MFJ SS SS
# exm?
3 3 2 2
Std Ded?
$12,200
$12,200
$12,200
$12,200
Rate Sch?
Y-1 Y-1 Y-1 Y-1
Situation 5
© Copyright 2013 by M. Ray Gregg. All rights reserved.
35
X1 X2 X3 X4 X5
H W C(15)
H W C
W C
W C
W C
Filing Status?
MFJ MFJ SS SS HH
# exm?
3 3 2 2
Std Ded?
$12,200
$12,200
$12,200
$12,200
Rate Sch?
Y-1 Y-1 Y-1 Y-1
Situation 5
© Copyright 2013 by M. Ray Gregg. All rights reserved.
36
X1 X2 X3 X4 X5
H W C(15)
H W C
W C
W C
W C
Filing Status?
MFJ MFJ SS SS HH
# exm?
3 3 2 2 2
Std Ded?
$12,200
$12,200
$12,200
$12,200
Rate Sch?
Y-1 Y-1 Y-1 Y-1
Situation 5
© Copyright 2013 by M. Ray Gregg. All rights reserved.
37
X1 X2 X3 X4 X5
H W C(15)
H W C
W C
W C
W C
Filing Status?
MFJ MFJ SS SS HH
# exm?
3 3 2 2 2
Std Ded?
$12,200
$12,200
$12,200
$12,200 $8,950
Rate Sch?
Y-1 Y-1 Y-1 Y-1
Situation 5
© Copyright 2013 by M. Ray Gregg. All rights reserved.
38
X1 X2 X3 X4 X5
H W C(15)
H W C
W C
W C
W C
Filing Status?
MFJ MFJ SS SS HH
# exm?
3 3 2 2 2
Std Ded?
$12,200
$12,200
$12,200
$12,200 $8,950
Rate Sch?
Y-1 Y-1 Y-1 Y-1 Z
Situation 5
© Copyright 2013 by M. Ray Gregg. All rights reserved.
39
X1 X2 X3 X4 X5 x11
H W C(15)
H W C
W C
W C
W C
W C
Filing Status?
MFJ MFJ SS SS HH
# exm?
3 3 2 2 2
Std Ded?
$12,200
$12,200
$12,200
$12,200 $8,950
Rate Sch?
Y-1 Y-1 Y-1 Y-1 Z
Situation 6
© Copyright 2013 by M. Ray Gregg. All rights reserved.
40
X1 X2 X3 X4 X5 x11
H W C(15)
H W C
W C
W C
W C
W
Filing Status?
MFJ MFJ SS SS HH
# exm?
3 3 2 2 2
Std Ded?
$12,200
$12,200
$12,200
$12,200 $8,950
Rate Sch?
Y-1 Y-1 Y-1 Y-1 Z
Situation 6
© Copyright 2013 by M. Ray Gregg. All rights reserved.
41
X1 X2 X3 X4 X5 x11
H W C(15)
H W C
W C
W C
W C
W
Filing Status?
MFJ MFJ SS SS HH S
# exm?
3 3 2 2 2
Std Ded?
$12,200
$12,200
$12,200
$12,200 $8,950
Rate Sch?
Y-1 Y-1 Y-1 Y-1 Z
Situation 6
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42
X1 X2 X3 X4 X5 x11
H W C(15)
H W C
W C
W C
W C
W
Filing Status?
MFJ MFJ SS SS HH S
# exm?
3 3 2 2 2 1
Std Ded?
$12,200
$12,200
$12,200
$12,200 $8,950
Rate Sch?
Y-1 Y-1 Y-1 Y-1 Z
Situation 6
© Copyright 2013 by M. Ray Gregg. All rights reserved.
43
X1 X2 X3 X4 X5 x11
H W C(15)
H W C
W C
W C
W C
W
Filing Status?
MFJ MFJ SS SS HH S
# exm?
3 3 2 2 2 1
Std Ded?
$12,200
$12,200
$12,200
$12,200 $8,950 $6,100
Rate Sch?
Y-1 Y-1 Y-1 Y-1 Z
Situation 6
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44
X1 X2 X3 X4 X5 x11
H W C(15)
H W C
W C
W C
W C
W
Filing Status?
MFJ MFJ SS SS HH S
# exm?
3 3 2 2 2 1
Std Ded?
$12,200
$12,200
$12,200
$12,200 $8,950 $6,100
Rate Sch?
Y-1 Y-1 Y-1 Y-1 Z X
Situation 6
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45
Head of Household and Surviving Spouse
• Problem 2 – 44– Cindy?
• No (SS)
– Dick?• Yes• Abandoned Spouse
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46
Head of Household and Surviving Spouse
• Problem 2 – 44• Problem 2 – 45
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47
2011
W C W
Filing Status?
# exm?
Std Ded?
Rate Sch?
Problem 2 – 45 a.
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48
2011
W C W
Filing Status? MFJ
# exm?
Std Ded?
Rate Sch?
Problem 2 – 45 a.
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49
2011
W C W
Filing Status? MFJ
# exm? 2 or 3?
Std Ded?
Rate Sch?
Problem 2 – 45 a.
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50
2011
W C W
Filing Status? MFJ
# exm? 2
Std Ded?
$12,200
Rate Sch? Y-1
Problem 2 – 45 a.
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51
2011 2012
W C W
C W
Filing Status? MFJ
# exm? 2
Std Ded?
$12,200
Rate Sch? Y-1
Problem 2 – 45 a.
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52
2011 2012
W C W
C W
Filing Status? MFJ HH
# exm? 2 1
Std Ded?
$12,200 $8,950
Rate Sch? Y-1 Z
Problem 2 – 45 a.
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53
2011 2012
W C W
C W
Filing Status? MFJ S
# exm? 2 1
Std Ded?
$12,200 $6,100
Rate Sch? Y-1 X
Problem 2 – 45 a.
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54
2011 2012 2013
W C W
C W
C W
Filing Status? MFJ S S
# exm? 2 1 1
Std Ded?
$12,200 $6,100
Rate Sch? Y-1 X
Problem 2 – 45 a.
© Copyright 2013 by M. Ray Gregg. All rights reserved.
55
2011 2012 2013 2014
W C W
C W
C W
C W
Filing Status? MFJ S S S
# exm? 2 1 1 1
Std Ded?
$12,200 $6,100 $6,100 $6,100
Rate Sch? Y-1 X X X
Problem 2 – 45 a.
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56
2011 2012 2013 2014
W C W
C W
C W
C W
Filing Status? MFJ S S S
# exm? 2 1 1 1
Std Ded?
$12,200 $6,100 $6,100 $6,100
Rate Sch? Y-1 X X X
What if full-time student?
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57
2011 2012 2013 2014
W C W
C W
C W
C W
Filing Status? MFJ SS SS S
# exm? 3 2 2 1
Std Ded?
$12,200
$12,200
$12,200 $6,100
Rate Sch? Y-1 Y-1 Y-1 X
What if full-time student?
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58
Head of Household and Surviving Spouse
• Problem 2 – 44• Problem 2 – 45
– Juanita?• Single
– Gertrude?• H of H• Abandoned Spouse
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60
Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met.
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61
* (entire year)
Personal Dependents(after ’04)
REQUIREMENTS FOR ALL
qual ID citizen jointreturn
claim noother dep
CHILDREN OTHERS
relationshipage
supportabode (>1/2)
relationship *gross income
support
© Copyright 2013 by M. Ray Gregg. All rights reserved.
62
Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met.
A. Ann supports her mother, who lives in her own apartment.
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63
SamplesPers + Dep = Total
a. Ann 1 + 1 = 2
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64
Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met.
B. Barry supports his aunt and her husband, who live in their own apartment.
© Copyright 2013 by M. Ray Gregg. All rights reserved.
65
SamplesPers + Dep = Total
a. Ann 1 + 1 = 2
b. Barry 1 + ? =
© Copyright 2013 by M. Ray Gregg. All rights reserved.
66
SamplesPers + Dep = Total
a. Ann 1 + 1 = 2
b. Barry 1 + 1 = 2
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67
Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met.
C. Charles provided $3,000 of support for his sister. She received $6,000 of social security benefits which she used to pay some of her own expenses.
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68
SamplesPers + Dep = Total
a. Ann 1 + 1 = 2
b. Barry 1 + 1 = 2
c. Charles 1 + 0 = 1
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69
Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met.
D. Dave, who is a dependent of his parents, files a return and reports his earnings from a summer job.
© Copyright 2013 by M. Ray Gregg. All rights reserved.
70
SamplesPers + Dep = Total
a. Ann 1 + 1 = 2
b. Barry 1 + 1 = 2
c. Charles 1 + 0 = 1
d. Dave 0 + 0 = 0
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71
Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met.
E. Ed and his two brothers help support their mother. Each contributed $3,000 toward her support. She received a taxable pension of $4,000 and used the money to pay her own expenses.
© Copyright 2013 by M. Ray Gregg. All rights reserved.
72
SamplesPers + Dep = Total
a. Ann 1 + 1 = 2
b. Barry 1 + 1 = 2
c. Charles 1 + 0 = 1
d. Dave 1 + 0 = 1
c. Ed 1 + 0 = 1
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73
Exemptions
• Personal• Dependent• Samples• Problem 2 – 40
or exceptions
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74
Problem 2 - 40a. Andrew
• 1 + 0 = 1b. Bob and Ann
• 2 + 1 = 3c. Clay
• 1 + 1 = 2d. Dave
• 1 + 0 = 1
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75
Exemptions
• Personal• Dependent• Samples• Problem 2 – 40• Problem 2 – 37
or exceptions
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76
Problem 2 - 37Social Security $1,500Mario 2,600Caroline (unrelated) 800Doug (son) 500Elaine (sister) 1,600 Total $7,000
a. Who might be able to claim Anna?not
< 10%
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77
Mario or Elaine
Social Security $1,500Mario 2,600Caroline (unrelated) 800Doug (son) 500Elaine (sister) 1,600 Total $7,000
Problem 2 - 37
a. Who might be able to claim Anna?
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78
Social Security $1,500Mario 2,600Caroline (unrelated) 800Doug (son) 500Elaine (sister) 1,600 Total $7,000
Problem 2 - 37
b. What do they have to do?
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80
Social Security $1,500Mario 2,600Caroline (unrelated) 800Doug (son) 500Elaine (sister) 1,600 Total $7,000
Problem 2 - 37
c. Can anyone claim head-of-household? Explain.
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82
Social Security $1,500Mario 2,600Caroline (unrelated) 800Doug (son) 500Elaine (sister) 1,600 Total $7,000
Problem 2 - 37
d. Can Mario claim an old age allowance for his mother? Explain.
Gross Income
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85
Problem 2 - 56Income 51,000 + -5,000 46,000
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86
Problem 2 - 56Income 51,000 + -3,000 48,000
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88
Problem 2 - 56Income 51,000 + -3,000 48,000Less: Adjustments 0ADJUSTED GROSS INCOME 48,000
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89
Problem 2 - 56Income 51,000 + -3,000 48,000Less: Adjustments 0AGI 48,000Exemption
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90
Problem 2 - 56Income 51,000 + -3,000 48,000Less: Adjustments 0AGI 48,000Exemption 1 = 3,900Std or Item Ded
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91
Problem 2 - 56Income 51,000 + -3,000 48,000Less: Adjustments 0AGI 48,000Exemption 1 = 3,900Std or Item Ded 6,100
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92
Problem 2 - 56Income 51,000 + -3,000 48,000Less: Adjustments 0AGI 48,000Exemption 1 = 3,900Item or Std Ded 4,000 or 6,100
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93
Problem 2 - 56Income 51,000 + -3,000 48,000Less: Adjustments 0AGI 48,000Exemption 1 = 3,900Item or Std Ded 4,000 or 6,100 10,000Taxable Income
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94
Problem 2 - 56Income 51,000 + -3,000 48,000Less: Adjustments 0AGI 48,000Exemption 1 = 3,900Item or Std Ded 4,000 or 6,100 10,000Taxable Income 38,000
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95
Problem 2 - 56Income 51,000 + -3,000 48,000Less: Adjustments 0AGI 48,000Exemption 1 = 3,900Item or Std Ded 4,000 or 6,100 10,000Taxable Income 38,000
Tax Calculation:TI 38,000
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96
Problem 2 - 56
Taxable Income 38,000
Tax Calculation:TI 38,000Less Base 30,650Excess 7,350
x Mar Rate 25%Tax on Excess 1,838
+ Tax on Base 3,893Total Tax 5,731
Taxable Income 38,000
Tax Calculation:TI 38,000Less Base 36,250Excess 1,750
x Mar Rate 25%Tax on Excess 438
+ Tax on Base 4,386Total Tax 4,824
© Copyright 2013 by M. Ray Gregg. All rights reserved.
99
Problem 2 - 56
© Copyright 2013 by M. Ray Gregg. All rights reserved.
100
Taxable Income 38,000
Tax Calculation:TI 38,000Less Base 36,250Excess 1,750
x Mar Rate 25%Tax on Excess 438
+ Tax on Base 4,481Total Tax 4,919
Problem 2 - 56
© Copyright 2013 by M. Ray Gregg. All rights reserved.
101
Taxable Income 38,000
Tax Calculation:TI 38,000Less Base 36,250Excess 1,750
x Mar Rate 25%Tax on Excess 438
+ Tax on Base 4,991Total Tax 5,429
Problem 2 - 56
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102
Problem 2 - 56Taxable Income 38,000
Tax Calculation:TI 38,000Less Base 36,250Excess 1,750
x Mar Rate 25%Tax on Excess 438
+ Tax on Base 4,991Total Tax 5,429
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104
Problem 2 - 56Taxable Income 38,000
Tax Calculation:TI 38,000Less Base 36,250Excess 1,750
x Mar Rate 25%Tax on Excess 438
+ Tax on Base 4,991Total Tax 5,429
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106
Problem 2 - 30a. Assuming he is self-supporting
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107
Problem 2 - 30
Income
a. Assuming he is self-supporting
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108
Problem 2 - 30
Income 1,800 + 1,600
a. Assuming he is self-supporting
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109
Problem 2 - 30
Income 1,800 + 1,600 3,400
a. Assuming he is self-supporting
© Copyright 2013 by M. Ray Gregg. All rights reserved.
110
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI
a. Assuming he is self-supporting
© Copyright 2013 by M. Ray Gregg. All rights reserved.
111
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI 3,400Exemption
a. Assuming he is self-supporting
© Copyright 2013 by M. Ray Gregg. All rights reserved.
112
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI 3,400Exemption 1 = 3,900Item or Std Ded
a. Assuming he is self-supporting
© Copyright 2013 by M. Ray Gregg. All rights reserved.
113
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI 3,400Exemption 1 = 3,900Item or Std Ded 600 or 6,100
a. Assuming he is self-supporting
© Copyright 2013 by M. Ray Gregg. All rights reserved.
114
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI 3,400Exemption 1 = 3,900Item or Std Ded 600 or 6,100 10,000
a. Assuming he is self-supporting
© Copyright 2013 by M. Ray Gregg. All rights reserved.
115
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI 3,400Exemption 1 = 3,900Item or Std Ded 600 or 6,100 10,000Taxable Income 0
a. Assuming he is self-supporting
© Copyright 2013 by M. Ray Gregg. All rights reserved.
117
Problem 2 - 30b. Assuming he is a dependent of parents
© Copyright 2013 by M. Ray Gregg. All rights reserved.
118
Problem 2 - 30
Income 1,800 + 1,600 3,400
b. Assuming he is a dependent of parents
© Copyright 2013 by M. Ray Gregg. All rights reserved.
119
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0
b. Assuming he is a dependent of parents
© Copyright 2013 by M. Ray Gregg. All rights reserved.
120
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI 3,400Exemption
b. Assuming he is a dependent of parents
© Copyright 2013 by M. Ray Gregg. All rights reserved.
121
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI 3,400Exemption 0 = 0
b. Assuming he is a dependent of parents
© Copyright 2013 by M. Ray Gregg. All rights reserved.
122
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI 3,400Exemption 0 = 0Item, Min, or Std
b. Assuming he is a dependent of parents
© Copyright 2013 by M. Ray Gregg. All rights reserved.
123
Minimum Standard Deduction(when dependents claimed by parents)
• See page 2/24
• $1,000 or• Earned
Income + $350
$1,000 min
$6,100 max
© Copyright 2013 by M. Ray Gregg. All rights reserved.
124
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI 3,400Exemption 0 = 0Item, Min, or Std 600 1000
b. Assuming he is a dependent of parents
© Copyright 2013 by M. Ray Gregg. All rights reserved.
125
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI 3,400Exemption 0 = 0Item, Min, or Std 600 1000 2,150
b. Assuming he is a dependent of parents
© Copyright 2013 by M. Ray Gregg. All rights reserved.
126
Problem 2 - 30
Income 1,800 + 1,600 3,400Less: Adjustments 0AGI 3,400Exemption 0 = 0Item, Min, or Std 600 1000 2,150 2,150Taxable Income
b. Assuming he is a dependent of parents