an "above the line" deduction (i.e. FOR AGI) and a below the line deduction (i.e. FROM AGI). Which one is more valuable? An above the line deduction‚ also called “deduction for adjusted gross income‚” includes those deductions that directly reduce gross income and are specifically allowed by law. Below the line deductions‚ also called “from adjusted gross income‚” are deductions that may be determinable upon adjusted gross income‚ which has already received specific deductions allowed by law. A couple
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regulate the payment of wages to certain classes of persons employed in factories and industrial establishments. The Act ensures regular and prompt payment of wages and prevents the exploitation of wage-earners by prohibiting arbitrary fines and deductions from wages. The Act applies to the whole of India‚ including the state of Jammu and Kashmir. The Act applies to the payment of wages to persons employed in any factory and to persons employed (otherwise than in a factory) upon any railway by a
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entire Section 80c deduction: Under Section 80C‚ the maximum deduction available is Rs 100‚000 pa which investors should seek to utilize. Make sure that financial products which you are choosing here are in line with your overall financial planning. In addition‚ individuals do understand that the benefits are capped. For instance ‚ investing 70‚000 in Public Provident Fund and 50‚000 in ELSS funds will give you tax benefit of 1‚00‚000 only. In addition make sure that you deduction. make investments
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False RATIONALE: Deductions are a matter of legislative grace. The only deductions allowed are those specifically provided for by statute‚ rulings‚ etc. 2. Mitch is in the 28% tax bracket. He may receive a different tax benefit for a $2‚000 expenditure that is classified as a deduction from AGI than he will receive for a $1‚000 expenditure that is classified as a deduction for AGI. a. True b. False ANSWER: True RATIONALE: The value of the tax benefit to Mitch for the deduction from AGI may
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CHAPTER 6 DEDUCTIONS AND LOSSES: IN GENERAL SOLUTIONS TO PROBLEM MATERIALS Question/ Problem 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Learning Objective LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 2 LO 2 LO 2 LO 2 LO 3 LO 3 LO 3 LO 3 LO 3 LO 3 LO 3 LO 3 Topic Allowed income and deductions Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI; deductions
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Week 6 Teamwork Assignment Task #1: Weekly pay before deductions or expenses Job 1: $50‚310 / 52 week in a year = $967.50 Job 2: 6 hours a day x 5 days a week x $20.50 = $615.00 Task #2: Weekly payroll deductions Job 1: $967.50 x 0.15 = $145.13 Job 2: $615 x 0.12 = $73.80 Task #3: Weekly job-related expenses Job 1: Daycare: $175.00 After school program: $75.00 Clothing:
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knowing what taxes you will be paying. Federal income taxes can be complicated and hard to file. But‚ knowing how it works can help save money‚ understand how it’s calculated‚ and what is determined in taxation. Income tax includes your income‚ deductions‚ credits‚ capital gains and losses‚ and taxable income. All of these things are sum up to help reduce taxes. There is a difference between federal and state income tax. In some states it is possible to pay both taxes when filing taxes. State income
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sale of a principal residence. The Jacksons incurred $16‚500 of itemized deductions. a. What is the Jackson’s taxable income? $111‚600 realized income $200‚000 minus excluded income $ 50‚000 (gain from sale of house) gross income $150‚000 minus for AGI deductions $ 0 Adjusted gross income $150‚000 minus itemized deductions $ 16‚500 (larger than standard deduction) subtotal $133‚500 minus exemptions $
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income‚ minus the standard deduction‚ and the deduction for personal exemptions.” We already know that Dale and Jane have a $157‚000 adjusted gross income or “AGI”‚ defined in §62 (a) as “gross income minus the following deductions” (all of the deductions that are listed are found on the first page of form 1040). Because the Carl’s AGI is already known‚ the next step in the process of determining their tax liability is to deduct the standard deduction. Standard deduction is defined in §63(c)(1) as
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deemed dividend referred to in section 2(22)(e)‚ if such dividend exceeds Rs. 2‚500 in a year. (3) The rate of deduction of tax in respect of such dividend is 20% plus surcharge‚ if applicable‚ plus education cess. (4) Under the proviso to section 194‚ individual shareholders‚ who are residents in India‚ are entitled to receive their dividends from any domestic company without deduction of tax at source by the company in cases where - * the amount of dividend income received from the company
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