Schedule M is used to determine whether you received the full benefit in your paycheck or if there is money due to you. The making work pay credit helps millions of workers and self-employed individuals, while the government retiree credit especially targets former government workers who are not receiving Social Security benefits. Income limits apply to the making work pay credit but not to the government retiree credit. Both credits are refundable, meaning that those eligible can get them even if they owe no tax. According to the IRS, “for most workers, the credit is based on the taxable wages reported to them on Forms W-2.
How would your answer differ (if at all) if the couple had AGI of $36,000 that was earned entirely byTim ? Answer The maximum amount of qualifying expenses is limited to $6,000 for two or more children. But, the amount should be reduced by the $1,800 that Martha received from her employer. So the total expenses are $4,200. Because their AGI was over $43,000, Tim and Martha are entitled to a credit equal to 20% of their expenses, or $840.
Assessment A: Understanding Taxable Income and Taxes Owed Meaning of taxable income and taxes owed Taxable income is the amount you must pay on once all deductions are adjusted from your gross income. The amount of taxes you must pay on according to the tax laws. Taxes owed are the amount you must pay depending on any deductions that you may have. Someone will owe a different amount of taxes depending on if they paid for child care, attended school full time, cared for an elder, owns a home, made donations or any other deductions. Assessment B: Understanding Ways to Save on Federal Taxes Some ways to save money on your federal income tax Some ways to save on your federal income tax is to get a house because you can deduct the interest you paid on your mortgage or home equity loan.
The cash flow statement summarizes actual inflows and outflows of cash during a given time period. The cash flow statement is a report of your spending patterns and can be used to create budget amounts for various expense categories. (pp. 83-86) Exercise (20 points) Based on the following data, would Ann and Carl Wilton receive a refund or owe additional taxes? Adjusted gross income, $46,186 Itemized deductions, $11,420 Child care tax credit, $80 Federal income tax withheld, $4,784 Amount for personal exemptions, $6,800 Average tax rate on taxable income, 15% Taxable income would be $27,966 ($46,186 - $11,420 - $6,800) times the average tax rate of 15 percent equals $4,195 less a tax credit of $80 gives a tax liability of $4,115.
| | | | | * Question 6 0 out of 2 points | | | Examine the graph below. The government has placed a $200 tariff on Product z. The new equilibrium price is $600. How much tax revenue will be collected? | | | | | Selected Answer: | $10,000 | | | | | * Question 7 2 out of 2 points | | | Examine the graph below.
Date: December 9, 2013 To: Michelle From Olajide Jaji RE: Taxation of stock option benefits. Dear Michelle, You have requested our office consider the below questions categorized in sessions. Part (A) What amounts need to be reported in her 2012 income tax return relating to the 1,000 Netcrawler share acquired in April 2012 and the 2000 shares sold in 2012. Answer to question Facts and Assumptions * Michelle is an employee of Netcrawler Software Limited in 2012. * June 2011, Netcrawler granted Michelle an employee stock option, valid until 2013 to acquire up to 1,000 common shares of Netcrawler at $20 per share.
| | | 5. | | | Click here if you would like to Show Work for this question E8-7 | | | | Correct. | | | James Hughes Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $2.75.
These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 11/8/2013 | Time Spent: | 09 min , 29 secs | Points Received: | 24 / 30 (80%) | | Question Type: | # Of Questions: | # Correct: | Multiple Choice | 5 | 4 | | | Grade Details - All Questions | Question 1. | Question : | Branch Corp's total assets at the end of last year were $315,000 and its net income after taxes was $22,750. What was its return on total assets?
Executive Summary and Introduction In May 2001, portfolio manager Kimi Ford was considering whether Nike, Inc. would be a good investment option. With an emphasis on value investing, Ford estimated that Nike was undervalued at discount rates below 11.17%. Her assistant Joanna Cohen’s did further calculations and estimated that Nike’s cost of capital was 8.4%. Ford manages a well-diversified portfolio and she has the focus on value investing. Therefore, we assume she would be interested in quality stocks with are fairly priced.
$44,000 net income. $140,000 taxable income. $80,000 net operating loss. Instructor Explanation: Chapter 14, 14.385; A $44,000 net operating loss is determined as follows: Income ($230,000 + $120,000) $350,000 - Expenses ($210,000) + Dividends-received deduction ($96,000) = Taxable income $44,000 . Points Received: 5 of 5 Comments: 7.