Federal Tax Law Effect on Individual Taxpayers Regarding Earned Income Tax Credit Federal Tax Law Effect on Individual Taxpayers Regarding Earned Income Tax Credit Jaree Chambers DeVry University / Keller Graduate School of Management Abstract Federal tax law effects each taxpayer differently and can prove difficult to interpret. The differences very due to income, family size or family situations i.e. single, married, divorced, childless, etc., and allowable credits or deductions. During
Words: 2417 - Pages: 10
Should the USA convert to a zero personal income tax? Abstract: This paper will discuss 2 countries that have implemented zero federal income tax and what would happen if the US chose to adopt a similar tax base. Every year most people in the United States of America gear up to file their yearly personal income taxes. The government relies on this money to operate. About forty five percent of the government income of the United States comes from personal income tax. A lot of Americans
Words: 1456 - Pages: 6
Research Problem 1 1. Discuss the different types of interests and the IRS rule related to the deductibility of each type for tax purposes. Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. There are different types of interests, including investment interest, qualified residence interest, student loan interest, and personal interest, which are either deductible or nondeductible. Personal interests are interests on car loans, credit
Words: 710 - Pages: 3
Ketlie K. Daniels Professor: Christopher Zapalski Federal Taxation – ACC 307 006016 November 21, 2010 Discuss the different types of interests and the IRS rule related to the deductibility of each type for tax purposes. Interest is defined as compensation for the use or forbearance of money. The general rule permits a deduction for interest paid or accrued within the taxable year on indebtedness. There are several types of allowable interest. If you paid or accrued interest on a loan and
Words: 1031 - Pages: 5
1 Tax Credits / Alternative Minimum Tax Federal Tax I Fall 2012 OVERVIEW: This handout summarizes the Tax Credits and Alternative Minimum Tax topics in chapter 7 of your textbook. These are the last topics we will be covering this semester, and as previously discussed I am providing this handout supplementing the material contained in your text due to the time we lost because of Storm Sandy. The material on Tax Credits is contained on pages 7-23 – 7-34 (11 pages) of your textbook. The material
Words: 2508 - Pages: 11
Arayawna Moore ACCT 613- Federal Income Taxation February 22, 2014 University of Maryland University College Susan K. Duke Issue: The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States within the Labor Market Rule: * Most corporate income is subject to a 35% statutory tax rate * Taxpayers with an ordinary income tax rate of 15% or less pay the 0% rate on dividends. Taxpayers in the 25%, 28%, 33%, and 35% tax brackets are
Words: 738 - Pages: 3
14-24 ANS According to IRS code sec 243, the purpose is to avoid triple taxation that’s allowing corporation to pay dividends to its shareholders without being taxed for the third time. Domestic corporations and dividends paid by the domestic corporation are entitled to the claim of dividends-received deduction. 14-51 ANS The net income on its financial books of a corporation my differ from the taxable income on its return and reconciliation is used to reconcile the difference. 14-52 ANS a)
Words: 620 - Pages: 3
Abstract: Jonathan (taxpayer) was notified by the IRS that he should appear at the local IRS district office with support for his 2009 travel and entertainment expenses as well as his charitable deductions. Jonathan advised his tax preparer that he was not going to make the meeting and elected and appointed, Sue Johnson, CPA to go in his place. What penalty or penalties could Jonathan be subject to? What about the Sue Johnson, CPA? Second, depending on the outcome and if Jonathan does not agree
Words: 1063 - Pages: 5
Chapter 3 3.1 Tax Formula Income (Gross receipts, taxable and nontaxable, except return of capital or receipt of borrowed funds) Less: Exclusions Gross Income Less: Deductions for AGI AGI Less: Greater of itemized/standard deduction Less: Personal/dependent exemptions Taxable Income Less: Tax Credits Tax Due/Refund Deductions for AGI (above the line deductions) * Expenses incurred
Words: 1826 - Pages: 8
Memo To: John and Jane Smith From: Desiree Looft, CPA Date: September 24, 2011 Subject: Explanation of tax benefits and liabilities for business and personal. 1(a) As a result of a recent court settlement for a client John earned $300,000 for his law practice LLC. He wants to minimize his tax liability and understand how the IRS will treat this money earned. He lease’s office space for $3,500 per month. He wants to know the advantages in leasing office space versus purchasing the building
Words: 2142 - Pages: 9
