Chapter 2

CHAPTER 2 Gross Income & Exclusions Income Tax Fundamentals 2011 Gerald E. Whittenburg Martha Altus-Buller 2011 Cengage Learning

Learning Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Defining Gross Income ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Interest Income ,[object Object],[object Object],[object Object],2011 Cengage Learning

US Government Bonds ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Dividend Income ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Tax Rates for Dividends ,[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning Regular tax bracket Qualifying Dividend Rate 2008-2010 10%, 15% 0% Higher brackets 15%

Alimony ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Other Issues with Alimony ,[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Alimony Example ,[object Object],[object Object],2011 Cengage Learning

Solution ,[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Child Support ,[object Object],[object Object],[object Object],2011 Cengage Learning

Prizes/Awards ,[object Object],[object Object],[object Object],2011 Cengage Learning

Prize/Award Example ,[object Object],[object Object],2011 Cengage Learning

Annuities/Pensions ,[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Annuities/Pensions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Annuities/Pensions Example 2011 Cengage Learning Example Din has saved $750,000 in his retirement account and uses it to purchase an annuity. His annuity equals $4,800/month and the IRS tables show he is expected to live 19 years. How much is excludable from tax each year of Din’s retirement? Assume that Din is required to use the general rule.

Solution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Annuities/Pensions – Simplified Method ,[object Object],[object Object],[object Object],2011 Cengage Learning

Employee Annuities ,[object Object],[object Object],[object Object],2011 Cengage Learning

Life Insurance Proceeds ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Life Insurance Proceeds Example ,[object Object],[object Object],[object Object],2011 Cengage Learning

Viatical Settlements ,[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Life Insurance Policy Transferred for Value ,[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Life Policy Transfer Example ,[object Object],[object Object],[object Object],2011 Cengage Learning

Gifts & Inheritances ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Scholarships ,[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Employer Paid Accident & Health Insurance Premiums ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Meals and Lodging ,[object Object],[object Object],[object Object],2011 Cengage Learning

Municipal Bond Interest ,[object Object],[object Object],[object Object],2011 Cengage Learning

Municipal Bond Interest Example ,[object Object],[object Object],2011 Cengage Learning

Solution ,[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Social Security Benefits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Calculating Taxable Amount of SS Benefits 2011 Cengage Learning If [MAGI + (50%)(SS benefits)] exceeds base amount as follows: Base Amount Filing Status $32,000 MFJ $ 0 MFS $25,000 All others … then, the taxable amount is calculated by completing the Simplified Taxable Social Security Worksheet

Unemployment Compensation ,[object Object],[object Object],2011 Cengage Learning

Employer-Provided Spending Accounts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Employee Fringe Benefits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2011 Cengage Learning

Chapter 2

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (17)

Andere mochten auch

Andere mochten auch (20)

Ähnlich wie Chapter 2

Ähnlich wie Chapter 2 (20)

Mehr von dphil002

Mehr von dphil002 (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Chapter 2