Self employ ppl: tax base is net self employ income= .9235*income, then *rate of 15.3%
Unified credit for integrated estate and gift tax is $1,455,800 covering $3,500,000 of taxable estate and gift. Medical expenses are deductible only to the extent they exceed 7.5% of AGI
Individual claimed as dependent has a basic standard deduction in 2010 limited to the greater of: $950 or $300 plus earned income (but not exceeding normal BSD-which is 5700)
Amount of each exemption in 2009 and 2010 is $3,650.
. The relative must have gross income of less than $3,650 in 2010 to qualified to be Q relative in 2010, a single person with gross income greater than $9,350 (5,700+3,650) must file a tax return
Alimony is: Excluded from payor’s income Included in recipient’s gross income
Child support payments Payments made to satisfy legal obligation to support child of taxpayer * Nondeductible by payor and not taxed to recipient (or child) of 2009 the first $2,400 of unemployment compensation is excluded from gross income loss of income is tax unless the taxpayer is physically injured or ill. All other personal injury damages are tax.
Workers compensation is excluded from gross income although it a loss of income.
Benefits received under policy purchased by taxpayer are excludible * Medical expenses are deductible to the extent total unreimbursed medical expenses exceed 7.5% of AGI
For self-employed, 100% of insurance premiums are deductible for AGI
Net investment income equals gross income less deductible investment expense. they incurred $4,500 of investment interest, their deduction for the year is limited to $700, their net investment income.
Donation to needy and ill. Exception. Ie 10k of goods –FMV 13k. get to deduct 50% of the 3000$ which is 1500. If the amount is too high. Limited to 2x of the basis. Contribution type | Public charity and