Transcript Filing Status - ORU Accounting Information

Federal Income Tax
Chapter 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.
2
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 last
day of year.
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
3
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.
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4
Filing Status
Hank, while on temporary assignment in
England for a large corporation, married
Wynona, a citizen of Great Britain. They
No,
were still in London at the
end of 20x1,
but they
could
but they return to the
United
States in
if they claimed
January 20x2. They made
no election
her WW
for 20x1 to include Wynona’s
income. worldwide
income on a U.S. tax return.
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
5
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.
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6
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.
7
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.
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8
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
=
Wynona =
Married Filing Separate
Head of Household
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
9
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.
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10
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.
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11
Situation 1
X1
H
W
Filing
Status?
# exm?
Std
Ded?
Rate
Sch?
© Copyright 2013 by M. Ray Gregg.
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12
Situation 1
X1
H
W
C(15)
Filing
Status?
# exm?
Std
Ded?
Rate
Sch?
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13
Situation 1
X1
H
W
C(15)
Filing
Status?
MFJ
# exm?
Std
Ded?
Rate
Sch?
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14
Situation 1
X1
H
W
C(15)
Filing
Status?
MFJ
# exm?
3
Std
Ded?
Rate
Sch?
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15
Situation 1
X1
H
W
C(15)
Filing
Status?
MFJ
# exm?
3
Std
Ded?
$12,200
Rate
Sch?
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16
Situation 1
X1
H
W
C(15)
Filing
Status?
MFJ
# exm?
3
Std
Ded?
Rate
Sch?
$12,200
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
17
Situation 2
X1
H
W H
C(15)
Filing
Status?
MFJ
# exm?
3
Std
Ded?
Rate
Sch?
X2
W
C
$12,200
Y-1
© Copyright 2013 by M. Ray Gregg.
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18
Situation 2
X1
H
W H
C(15)
Filing
Status?
MFJ
# exm?
3
Std
Ded?
Rate
Sch?
X2
W
C
MFJ
$12,200
Y-1
© Copyright 2013 by M. Ray Gregg.
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19
Situation 2
X1
H
X2
W H
C(15)
W
C
Filing
Status?
MFJ
MFJ
# exm?
3
3
Std
Ded?
Rate
Sch?
$12,200
Y-1
© Copyright 2013 by M. Ray Gregg.
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20
Situation 2
X1
H
X2
W H
C(15)
W
C
Filing
Status?
MFJ
MFJ
# exm?
3
3
Std
Ded?
Rate
Sch?
$12,200 $12,200
Y-1
© Copyright 2013 by M. Ray Gregg.
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21
Situation 2
X1
H
X2
W H
C(15)
W
C
Filing
Status?
MFJ
MFJ
# exm?
3
3
Std
Ded?
Rate
Sch?
$12,200 $12,200
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
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22
Situation 3
X1
H
X2
W H
C(15)
W
C
Filing
Status?
MFJ
MFJ
# exm?
3
3
Std
Ded?
Rate
Sch?
X3
W
C
$12,200 $12,200
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
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23
Situation 3
X1
H
X2
W H
C(15)
W
C
Filing
Status?
MFJ
MFJ
# exm?
3
3
Std
Ded?
Rate
Sch?
X3
W
C
SS
$12,200 $12,200
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
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24
Situation 3
X1
H
X2
W H
C(15)
W
C
X3
W
C
Filing
Status?
MFJ
MFJ
SS
# exm?
3
3
2
Std
Ded?
Rate
Sch?
$12,200 $12,200
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
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25
Situation 3
X1
H
X2
W H
C(15)
W
C
X3
W
C
Filing
Status?
MFJ
MFJ
SS
# exm?
3
3
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200
Y-1
Y-1
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26
Situation 3
X1
H
X2
W H
C(15)
W
C
X3
W
C
Filing
Status?
MFJ
MFJ
SS
# exm?
3
3
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
27
Situation 4
X1
H
X2
W H
C(15)
W
C
X3
X4
W
C
W
C
Filing
Status?
MFJ
MFJ
SS
# exm?
3
3
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200
Y-1
Y-1
Y-1
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28
Situation 4
X1
H
X2
W H
C(15)
W
C
X3
X4
W
C
W
C
SS
Filing
Status?
MFJ
MFJ
SS
# exm?
3
3
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
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29
Situation 4
X1
H
X2
W H
C(15)
W
C
X3
X4
W
C
W
C
Filing
Status?
MFJ
MFJ
SS
SS
# exm?
3
3
2
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
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30
Situation 4
X1
H
X2
W H
C(15)
W
C
X3
X4
W
C
W
C
Filing
Status?
MFJ
MFJ
SS
SS
# exm?
3
3
2
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
31
Situation 4
X1
H
X2
W H
C(15)
W
C
X3
X4
W
C
W
C
Filing
Status?
MFJ
MFJ
SS
SS
# exm?
3
3
2
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
32
Situation 5
X1
H
X2
W H
C(15)
W
C
X3
X4
X5
W
C
W
C
W
C
Filing
Status?
MFJ
MFJ
SS
SS
# exm?
3
3
2
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
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33
Situation 5
X1
H
X2
W H
C(15)
W
C
X3
X4
X5
W
C
W
C
W
C
more
assmptns?
Filing
Status?
MFJ
MFJ
SS
SS
# exm?
3
3
2
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
34
Situation 5
X1
H
X2
W H
C(15)
W
C
X3
X4
X5
W
C
W
C
W
C
Filing
Status?
MFJ
MFJ
SS
SS
# exm?
3
3
2
2
Std
Ded?
Rate
Sch?
HH
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
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35
Situation 5
X1
H
X2
W H
C(15)
W
C
X3
X4
X5
W
C
W
C
W
C
Filing
Status?
MFJ
MFJ
SS
SS
HH
# exm?
3
3
2
2
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
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36
Situation 5
X1
H
X2
W H
C(15)
W
C
X3
X4
X5
W
C
W
C
W
C
Filing
Status?
MFJ
MFJ
SS
SS
HH
# exm?
3
3
2
2
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
$8,950
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
37
Situation 5
X1
H
X2
W H
C(15)
W
C
X3
X4
X5
W
C
W
C
W
C
Filing
Status?
MFJ
MFJ
SS
SS
HH
# exm?
3
3
2
2
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
$8,950
Z
38
Situation 6
X1
H
X2
W H
C(15)
W
C
X3
X4
X5
W
C
W
C
W
C
Filing
Status?
MFJ
MFJ
SS
SS
HH
# exm?
3
3
2
2
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
x11
W
C
$8,950
Z
39
Situation 6
X1
H
X2
W H
C(15)
W
C
X3
X4
X5
W
C
W
C
W
C
Filing
Status?
MFJ
MFJ
SS
SS
HH
# exm?
3
3
2
2
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
x11
W
$8,950
Z
40
Situation 6
X1
H
X2
W H
C(15)
W
C
X3
X4
W
C
W
C
X5
W
C
Filing
Status?
MFJ
MFJ
SS
SS
HH
# exm?
3
3
2
2
2
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
x11
W
S
$8,950
Z
41
Situation 6
X1
H
X2
W H
C(15)
W
C
X3
X4
X5
W
C
W
C
W
C
x11
W
Filing
Status?
MFJ
MFJ
SS
SS
HH
S
# exm?
3
3
2
2
2
1
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
$8,950
Z
42
Situation 6
X1
H
X2
W H
C(15)
W
C
X3
X4
X5
W
C
W
C
W
C
x11
W
Filing
Status?
MFJ
MFJ
SS
SS
HH
S
# exm?
3
3
2
2
2
1
$8,950
$6,100
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
Z
43
Situation 6
X1
H
X2
W H
C(15)
W
C
X3
X4
X5
W
C
W
C
W
C
x11
W
Filing
Status?
MFJ
MFJ
SS
SS
HH
S
# exm?
3
3
2
2
2
1
$8,950
$6,100
Z
X
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200 $12,200
Y-1
Y-1
Y-1
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
44
Head of Household
and Surviving Spouse
• Problem 2 – 44
– Cindy?
• No (SS)
– Dick?
• Yes
• Abandoned Spouse
© Copyright 2013 by M. Ray Gregg.
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45
Head of Household
and Surviving Spouse
• Problem 2 – 44
• Problem 2 – 45
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All rights reserved.
46
Problem 2 – 45 a.
2011
W
C
W
Filing
Status?
# exm?
Std
Ded?
Rate
Sch?
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
47
Problem 2 – 45 a.
2011
W
C
W
Filing
Status?
MFJ
# exm?
Std
Ded?
Rate
Sch?
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
48
Problem 2 – 45 a.
2011
W
C
W
Filing
Status?
MFJ
# exm? 2 or 3?
Std
Ded?
Rate
Sch?
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
49
Problem 2 – 45 a.
2011
W
C
W
Filing
Status?
MFJ
# exm?
2
Std
Ded?
$12,200
Rate
Sch?
Y-1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
50
Problem 2 – 45 a.
2011 2012
W
C
W
Filing
Status?
MFJ
# exm?
2
Std
Ded?
$12,200
Rate
Sch?
Y-1
C
W
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
51
Problem 2 – 45 a.
2011 2012
W
C
C
W
W
Filing
Status?
MFJ
HH
# exm?
2
1
Std
Ded?
$12,200
$8,950
Rate
Sch?
Y-1
Z
© Copyright 2013 by M. Ray Gregg.
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52
Problem 2 – 45 a.
2011 2012
W
C
C
W
W
Filing
Status?
MFJ
S
# exm?
2
1
Std
Ded?
$12,200
$6,100
Rate
Sch?
Y-1
X
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
53
Problem 2 – 45 a.
2011 2012 2013
W
C
C
C
W
W
W
Filing
Status?
MFJ
S
S
# exm?
2
1
1
Std
Ded?
$12,200
$6,100
Rate
Sch?
Y-1
X
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
54
Problem 2 – 45 a.
2011 2012 2013 2014
W
C
C
C
C
W
W
W
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
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
55
What if full-time student?
2011 2012 2013 2014
W
C
C
C
C
W
W
W
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
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
56
What if full-time student?
2011 2012 2013 2014
W
C
C
C
C
W
W
W
W
Filing
Status?
MFJ
SS
SS
S
# exm?
3
2
2
1
Std
Ded?
Rate
Sch?
$12,200 $12,200 $12,200
Y-1
Y-1
Y-1
$6,100
X
© Copyright 2013 by M. Ray Gregg.
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57
Head of Household
and Surviving Spouse
• Problem 2 – 44
• Problem 2 – 45
– Juanita?
• Single
– Gertrude?
• H of H
• Abandoned Spouse
© Copyright 2013 by M. Ray Gregg.
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58
Exemptions
• Personal
• Dependent
• Samples
© Copyright 2013 by M. Ray Gregg.
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59
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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60
Personal Dependents
(after ’04)
REQUIREMENTS FOR ALL
qual ID citizen
joint
return
claim no
other dep
CHILDREN
OTHERS
relationship
age
abode (>1/2)
support
relationship *
gross income
* (entire year)
support
© Copyright 2013 by M. Ray Gregg.
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61
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.
© Copyright 2013 by M. Ray Gregg.
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62
Samples
a. Ann
Pers
+
Dep
=
Total
1
+
1
=
2
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63
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.
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64
Samples
Pers
+
Dep
=
Total
a. Ann
1
+
1
=
2
b. Barry
1
+
?
=
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65
Samples
Pers
+
Dep
=
Total
a. Ann
1
+
1
=
2
b. Barry
1
+
1
=
2
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66
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.
© Copyright 2013 by M. Ray Gregg.
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67
Samples
Pers
+
Dep
=
Total
a. Ann
1
+
1
=
2
b. Barry
1
+
1
=
2
c. Charles
1
+
0
=
1
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68
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.
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69
Samples
Pers
+
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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70
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.
71
Samples
Pers
+
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
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
72
Exemptions
•
•
•
•
Personal
Dependent
Samples
Problem 2 – 40
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
73
or exceptions
Problem 2 - 40
a. Andrew
• 1+0=1
b. Bob and Ann
• 2+1=3
c. Clay
• 1+1=2
d. Dave
• 1+0=1
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
74
Exemptions
•
•
•
•
•
Personal
Dependent
Samples
Problem 2 – 40
Problem 2 – 37
© Copyright 2013 by M. Ray Gregg.
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75
or exceptions
Problem 2 - 37
Social Security
Mario
Caroline (unrelated)
Doug (son)
Elaine (sister)
Total
a.
$1,500
2,600
800
500
1,600
$7,000
< 10%
not
Who might be able to claim Anna?
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76
Problem 2 - 37
Social Security
Mario
Caroline (unrelated)
Doug (son)
Elaine (sister)
Total
a.
$1,500
2,600
800
500
1,600
$7,000
Who might be able to claim Anna?
Mario or Elaine
© Copyright 2013 by M. Ray Gregg.
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77
Problem 2 - 37
Social Security
Mario
Caroline (unrelated)
Doug (son)
Elaine (sister)
Total
b.
$1,500
2,600
800
500
1,600
$7,000
What do they have to do?
© Copyright 2013 by M. Ray Gregg.
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78
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
79
Problem 2 - 37
Social Security
Mario
Caroline (unrelated)
Doug (son)
Elaine (sister)
Total
c.
$1,500
2,600
800
500
1,600
$7,000
Can anyone claim head-of-household?
Explain.
© Copyright 2013 by M. Ray Gregg.
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80
Pub 17, page 24
© Copyright 2013 by M. Ray Gregg.
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81
Problem 2 - 37
Social Security
Mario
Caroline (unrelated)
Doug (son)
Elaine (sister)
Total
d.
$1,500
2,600
800
500
1,600
$7,000
Can Mario claim an old age allowance
for his mother? Explain.
Gross Income
© Copyright 2013 by M. Ray Gregg.
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82
Problem 2 - 56
© Copyright 2013 by M. Ray Gregg.
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83
Problem 2 - 56
Income
51,000
© Copyright 2013 by M. Ray Gregg.
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84
Problem 2 - 56
Income
51,000
+
© Copyright 2013 by M. Ray Gregg.
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-5,000
46,000
85
Problem 2 - 56
Income
51,000
+
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
-3,000
48,000
86
Problem 2 - 56
Income
51,000 +
Less: Adjustments
ADJUSTED GROSS INCOME
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
-3,000
48,000
0
48,000
88
Problem 2 - 56
Income
Less: Adjustments
AGI
Exemption
51,000
+
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
-3,000
48,000
0
48,000
89
Problem 2 - 56
Income
51,000 +
Less: Adjustments
AGI
Exemption
1=
Std or Item Ded
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
-3,000
48,000
0
48,000
3,900
90
Problem 2 - 56
Income
51,000 +
Less: Adjustments
AGI
Exemption
1=
Std or Item Ded
6,100
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
-3,000
48,000
0
48,000
3,900
91
Problem 2 - 56
Income
51,000 +
Less: Adjustments
AGI
Exemption
1=
Item or Std Ded
4,000 or
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
-3,000
48,000
0
48,000
3,900
6,100
92
Problem 2 - 56
Income
51,000 +
Less: Adjustments
AGI
Exemption
1=
Item or Std Ded
4,000 or
Taxable Income
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
-3,000
3,900
6,100
48,000
0
48,000
10,000
93
Problem 2 - 56
Income
51,000 +
Less: Adjustments
AGI
Exemption
1=
Item or Std Ded
4,000 or
Taxable Income
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
-3,000
3,900
6,100
48,000
0
48,000
10,000
38,000
94
Problem 2 - 56
Income
51,000 +
Less: Adjustments
AGI
Exemption
1=
Item or Std Ded
4,000 or
Taxable Income
-3,000
3,900
6,100
48,000
0
48,000
10,000
38,000
Tax Calculation:
TI
© Copyright 2013 by M. Ray Gregg.
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38,000
95
Problem 2 - 56
Taxable Income
38,000
Tax Calculation:
TI
Less Base
Excess
x Mar Rate
Tax on Excess
+ Tax on Base
Total Tax
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
38,000
30,650
7,350
25%
1,838
3,893
5,731
96
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97
© Copyright 2013 by M. Ray Gregg.
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98
Problem 2 - 56
Taxable Income
38,000
Tax Calculation:
TI
Less Base
Excess
x Mar Rate
Tax on Excess
+ Tax on Base
Total Tax
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
38,000
36,250
1,750
25%
438
4,386
4,824
99
Problem 2 - 56
Taxable Income
38,000
Tax Calculation:
TI
Less Base
Excess
x Mar Rate
Tax on Excess
+ Tax on Base
Total Tax
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
38,000
36,250
1,750
25%
438
4,481
4,919
100
Problem 2 - 56
Taxable Income
38,000
Tax Calculation:
TI
Less Base
Excess
x Mar Rate
Tax on Excess
+ Tax on Base
Total Tax
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
38,000
36,250
1,750
25%
438
4,991
5,429
101
Problem 2 - 56
Taxable Income
38,000
Tax Calculation:
TI
Less Base
Excess
x Mar Rate
Tax on Excess
+ Tax on Base
Total Tax
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
38,000
36,250
1,750
25%
438
4,991
5,429
102
Problem 2 - 56
Taxable Income
38,000
Tax Calculation:
TI
Less Base
Excess
x Mar Rate
Tax on Excess
+ Tax on Base
Total Tax
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
38,000
36,250
1,750
25%
438
4,991
5,429
104
Problem 2 – 30 (a)
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105
Problem 2 - 30
a.
Assuming he is self-supporting
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106
Problem 2 - 30
a.
Assuming he is self-supporting
Income
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107
Problem 2 - 30
a.
Assuming he is self-supporting
Income
1,800
+
© Copyright 2013 by M. Ray Gregg.
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1,600
108
Problem 2 - 30
a.
Assuming he is self-supporting
Income
1,800
+
© Copyright 2013 by M. Ray Gregg.
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1,600
3,400
109
Problem 2 - 30
a.
Assuming he is self-supporting
Income
Less: Adjustments
AGI
1,800
+
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
1,600
3,400
0
110
Problem 2 - 30
a.
Assuming he is self-supporting
Income
Less: Adjustments
AGI
Exemption
1,800
+
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
1,600
3,400
0
3,400
111
Problem 2 - 30
a.
Assuming he is self-supporting
Income
Less: Adjustments
AGI
Exemption
Item or Std Ded
1,800
+
1=
© Copyright 2013 by M. Ray Gregg.
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1,600
3,400
0
3,400
3,900
112
Problem 2 - 30
a.
Assuming he is self-supporting
Income
Less: Adjustments
AGI
Exemption
Item or Std Ded
1,800
+
1=
600 or
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
1,600
3,400
0
3,400
3,900
6,100
113
Problem 2 - 30
a.
Assuming he is self-supporting
Income
Less: Adjustments
AGI
Exemption
Item or Std Ded
1,800
+
1=
600 or
© Copyright 2013 by M. Ray Gregg.
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1,600
3,900
6,100
3,400
0
3,400
10,000
114
Problem 2 - 30
a.
Assuming he is self-supporting
Income
Less: Adjustments
AGI
Exemption
Item or Std Ded
Taxable Income
1,800
+
1=
600 or
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
1,600
3,900
6,100
3,400
0
3,400
10,000
0
115
Problem 2 – 30 (b)
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116
Problem 2 - 30
b.
Assuming he is a dependent of parents
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117
Problem 2 - 30
b.
Assuming he is a dependent of parents
Income
1,800
+
© Copyright 2013 by M. Ray Gregg.
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1,600
3,400
118
Problem 2 - 30
b.
Assuming he is a dependent of parents
Income
Less: Adjustments
1,800
+
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
1,600
3,400
0
119
Problem 2 - 30
b.
Assuming he is a dependent of parents
Income
Less: Adjustments
AGI
Exemption
1,800
+
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
1,600
3,400
0
3,400
120
Problem 2 - 30
b.
Assuming he is a dependent of parents
Income
Less: Adjustments
AGI
Exemption
1,800
+
0=
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
1,600
3,400
0
3,400
0
121
Problem 2 - 30
b.
Assuming he is a dependent of parents
Income
Less: Adjustments
AGI
Exemption
Item, Min, or Std
1,800
+
0=
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1,600
3,400
0
3,400
0
122
Minimum Standard Deduction
(when dependents claimed by parents)
• See page
2/24
• $1,000 or
• Earned
Income +
$350
$6,100 max
$1,000 min
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123
Problem 2 - 30
b.
Assuming he is a dependent of parents
Income
Less: Adjustments
AGI
Exemption
Item, Min, or Std
1,800
+
0=
600 1000
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
1,600
3,400
0
3,400
0
124
Problem 2 - 30
b.
Assuming he is a dependent of parents
Income
Less: Adjustments
AGI
Exemption
Item, Min, or Std
1,800
+
0=
600 1000
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
1,600
3,400
0
3,400
0
2,150
125
Problem 2 - 30
b.
Assuming he is a dependent of parents
Income
Less: Adjustments
AGI
Exemption
Item, Min, or Std
Taxable Income
1,800
+
0=
600 1000
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
1,600
0
2,150
3,400
0
3,400
2,150
126
Problem 2 - 30
b.
Assuming he is a dependent of parents
Income
Less: Adjustments
AGI
Exemption
Item, Min, or Std
Taxable Income
1,800
+
0=
600 1000
© Copyright 2013 by M. Ray Gregg.
All rights reserved.
1,600
0
2,150
3,400
0
3,400
2,150
1,250
127