Impact on Taxes. From question 24, if Lawrence had forgotten a $5000 tax credit (instead of a $5000 tax deduction), how would his taxes be affected?
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Impact on Taxes. From question 24, if Lawrence had forgotten a $5000 tax credit (instead
of a $5000 tax deduction), how would his taxes be affected?
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- 4.An individual made $85,000 for the year. Using the tax given , answer the following questions: A.What is this person's marginal tax rate? B.How much tax does this person owe? C.What is the effective tax rate?Chuck, a single taxpayer, earns $75, 400 in taxable income and $10, 200 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.) Required: How much federal tax will he owe? b. What is his average tax rate? c. What is his effective tax rate? d. What is his currentTrue or false: After calculating your income taxes, you may find yourself owing to the IRS instead of getting a refund?
- If the tax payer's claimed capital allowance for a car that registered under his personal name and the car was used in his business. What should I do to this issue as a tax agent?Which of the following is not a deduction for AGI? a. Alimony paid for a divorce finalized in 2018. b. Business rent on a self-employed business. c. Property taxes paid on your primary residence. d. One half of self-employment tax.Impact on Taxes. Lawrence has a marginal tax rate of 24%. He suddenly realizes that he neglected to include a $5,000 tax deduction. How will this oversight affect his taxes?
- Evaluate the three strategies reducing income, increasing deductions, and taking advantage of tax credits that you listed based on their overall effect on a person's tax situation (the amount of income taxes that the person will have to pay). Evaluate the ethical issues related to the payment of income taxes. in other words, if there is a legal tax-saving strategy available to a person who earns $50,000 per year, will it be ethical for the person to utilize this strategy in order to pay less tax? State how your answer to the previous question would change if the person were making $1,500,000.Describe some reasons why it is a good idea to file a tax return if you have earned income, even if you do not owe any taxes.TAX HELP 1. What is more valuable to a taxpayer, a $100 tax credit or a $100 tax deduction? Why? 2. What are some of the considerations that Congress takes into account in determining whether to give taxpayers a credit or a deduction to motivate taxpayers to make certain expenditures? 3. If a taxpayer has both refundable credits and non-refundable credits, what order would the taxpayer want to use them? Give an example to show why your answer is correct. 4. B a US citizen sells products in France. B’s income in France is $500,000 and B pays $200,000 in French income taxes. B’s US tax liability with respect to that income is $150,000. How much of a credit will B be able to take for the French income tax paid in the current year? Will there be any carryover? 5. Before credits a company has a regular tax liability of $300,000, an alternative minimum tax of $220,000. What is the maximum amount of general business credits that the company will be able to take in the current year? 6. A…
- From the following list of tax credits, which credits help to reduce the tax liability on a taxpayer's taxable income? 1. Personal tax credit 2. Earned income credit 3. Child savers credit 4. Student loan interest credit 1, 2, and 3. 2 and 3. 2, 3, and 4. 1, 2, 3, and 4.What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit?$ Why is there an investment income limit in the tax law regarding the credit? The earned income credit is meant to assistGive an argument in favor of taxes on wealth like the estate tax. What potential problems would there be in trying to enforce a new wealth tax on living individuals?