Federal Tax Notes
§ 63- Taxable Income
Gross income §61, 71-90, 101-104 –permitted deductions from gross income= AGI- standard or itemized-personal and dependency exemptions= taxable income x appropriate tax rates= tax liability- tax credits+ other taxes- tax payments and refundable credits= tax refund or tax due.
IRC 6012-Who is required to file an income tax return?
IRC 6072-When is an income tax return due?
IRC 6081- Can I obtain an extension for filing an income tax return?
§7703 – Determination of Marital Status
§6013-Joint Returns of income tax by husband and wife
§2(a) Surviving spouse defined – head of household 2(b)
Dependent Defined-§152
Qualifying Child- §152(c)
Qualifying Relative§152(d)
Personal Exemption §63(a)-Defines taxable income as gross income minus the deductions allowed by this chapter
§63(b)-Individuals who do not itemize their deduction are allowed to deduct the standard deduction and a personal exemption
§151(a)-Exemptions allowed as a deduction for computing taxable income
Standard Deduction-§63
Most common form of tax payments is through income tax withholding (IRC 31) and quarterly estimated tax payments (IRC 6654)
Amount of the required installment (IRC 6654(d)) underpayment rate (IRC 6621) interest on underpayment- IRC 6601
Failure to file/pay- IRC 6651
Other penalties- IRC 6662, 6663
IRC §446 lists permissible methods of accounting
IRC §61- “…all income from whatever source derived…”
Interest- 454(a) and §103(a)
IRC §316(a)-Distribution of property made by a corporation to its shareholders
IRC §305-Genearl Rule is that stock dividends are not included in gross income
Taxation of dividends-IRC §301(c
Qualified dividends-IRC 1(h)(11)(B)(i)-
Average tax rate= total tax/taxable income
Marginal= additional tax rates on the next dollar of
Gross income §61, 71-90, 101-104 –permitted deductions from gross income= AGI- standard or itemized-personal and dependency exemptions= taxable income x appropriate tax rates= tax liability- tax credits+ other taxes- tax payments and refundable credits= tax refund or tax due.
IRC 6012-Who is required to file an income tax return?
IRC 6072-When is an income tax return due?
IRC 6081- Can I obtain an extension for filing an income tax return?
§7703 – Determination of Marital Status
§6013-Joint Returns of income tax by husband and wife
§2(a) Surviving spouse defined – head of household 2(b)
Dependent Defined-§152
Qualifying Child- §152(c)
Qualifying Relative§152(d)
Personal Exemption §63(a)-Defines taxable income as gross income minus the deductions allowed by this chapter
§63(b)-Individuals who do not itemize their deduction are allowed to deduct the standard deduction and a personal exemption
§151(a)-Exemptions allowed as a deduction for computing taxable income
Standard Deduction-§63
Most common form of tax payments is through income tax withholding (IRC 31) and quarterly estimated tax payments (IRC 6654)
Amount of the required installment (IRC 6654(d)) underpayment rate (IRC 6621) interest on underpayment- IRC 6601
Failure to file/pay- IRC 6651
Other penalties- IRC 6662, 6663
IRC §446 lists permissible methods of accounting
IRC §61- “…all income from whatever source derived…”
Interest- 454(a) and §103(a)
IRC §316(a)-Distribution of property made by a corporation to its shareholders
IRC §305-Genearl Rule is that stock dividends are not included in gross income
Taxation of dividends-IRC §301(c
Qualified dividends-IRC 1(h)(11)(B)(i)-
Average tax rate= total tax/taxable income
Marginal= additional tax rates on the next dollar of