Jamie is an employee of LMN Corporation. He also sits on the board of directors of the organization. What method will be used to calculate the income tax on his director's fees? Lump-sum tax method Retroactive tax method Bonus tax method Regular pay period deduction method
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Jamie is an employee of LMN Corporation. He also sits on the board of directors of the organization. What method will be used to calculate the income tax on his director's fees?
Lump-sum tax method
Retroactive tax method
Bonus tax method
Regular pay period deduction method
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- This Worksheet is provided as a courtesy to aid your work. Use it at your own discretion. Use the worksheets below to 1) calculate the tax that each person pays, and 2) the total tax revenue that will be collected. Use the following formula to calculate each person’s tax liability: Person X → ($Income in this braquet x 0.15) + ($Income in this braquet x 0.30) = Tax Paid by Person X Example 1; if person X earns $70,000/year, then → ($50,000 x 0.15) + ($20,000 x 0.30) = $7,500 + $6,000 = $13,500 Example 2; if person X earns $10,000/year, then → ($10,000 x 0.15) + ($0 x 0.30) = $1,500 + $0 = $1,500 3. What percent of the Nation's Income does the Total Tax Revenue represent?Indicate whether the following acts can be considered as tax evasion/tax management/ tax planning or otherwise: 1. Sushil is using a motor car for his personal purposes, but charges as businessexpenditure. 2. SQL Ltd. pays advance tax by estimating his total income in previous year to ensure timely compliance.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?
- Regarding the Tax Tables related to the Federal income tax, which of the following statements is correct? a. For any one year, the Tax Tables are issued by the IRS after the Tax Rate Schedules. b. The Tax Tables will always yield the same amount of tax as the Tax Rate Schedules. c. The Tax Tables can be used by an estate but not by a trust. d. Taxpayers can elect as to whether they use the Tax Tables or the Tax Rate Schedules.I. Final Income taxation is characterized by: 1. Full taxes are withheld by the income payor at source. 2. Recipient receives the income net of tax 3. Payor is the one required by law to remit the tax to government 4. Recipient need not file an income tax return 5. Tax withheld constitutes full tax due and deemed final payments EXAMPLE: Mr. C is a depositor of W bank and earns an interest income of P8,000 in a 6-month time deposit on year 2020. This interest income is subject to 20% final tax or P1,600. Requirements: Discuss final income tax using the names and amounts given. For example, In final income taxation, Mr. receives the income of P6,400 net of tax.Explain the tax effect based on providing $180,000 per year for the client’s salary and $70,000 per year for his daughter’s salary if they withdraw cash from the business or pay dividends as appropriate. E. Justify the percentage of ownership the client’s daughter should have in the business based on the type of business entity recommended. Consider the tax law in reference to the recommendation and how the decision will affect the daughter’s tax return. Answer for a S-Corporation please
- 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.Sarah owns a jewelry store and prepares her financial statements using the accrual method of accounting. However, she completes her Schedule C on her individual income tax return using the cash method. Given the following accrual method information from the income statement and balance sheet, determine her business net income under the cash method for tax reporting purposes. Accrual method net income $40,000 Beginning accounts receivable $60,000 Ending accounts receivable $37,000 Beginning accounts payable $24,000 Ending accounts payable $30,000 Sarah owns a jewelry store and prepares her financial statements using the accrual method of accounting. However, she completes her Schedule C on her individual income tax return using the cash method. Given the following accrual method information from the income statement and balance sheet, determine her business net income under the cash method for tax reporting purposes. Accrual method net income $40,000 Beginning accounts receivable…Which of the following are not deductible by a CPA who prepares tax returns? a. Subscription to the Kiplinger Tax letter b. Subscription to CCH service online c.Dues to the country club to entertain clients d. Dues to the California Society of CPAs
- Federal Income tax For the case below, do the following:1. Identifies and breaks down the deductions to which the taxpayer is entitled.2. Calculate the federal income tax.3. Determines how each taxpayer must pay their contributions according to their marital status and conditions.4. Identifies if the children of the taxpayers are considered qualifying children. Use Chart B of the instructions found in IRS 1040 and 1040-SR 2021 Tax Year. Case 1: Roberto RoblesRoberto Robles is a manager in a restaurant; His salary for this tax year was $65,000. He received a $60,000 inheritance and $13,000 in interest from a savings account. Roberto files his taxes together with his wife, who works as an administrator of a complex and has a salary of $45,000. They have two children: a 21-year-old who studies at the university, and an 18-year-old who does not study.How is Gross Income defined in the Tax Code and what are the implications to individual and business taxpayers? Name several examples of gross income for individuals and for corporations. Also, discuss the concept of Adjusted Gross Income for Individuals and provide two examples of deductions from gross income to arrive at AGI as well as two examples of deductions from AGI to get to taxable income. What are the three fundamental and general requirements in order to deduct business expenses for tax purposes? What is your opinion of these general requirements and support that opinion?According to the contributions of Puerto Rico:Indicate the items of income that are part of the gross income.Indicates income exclusions.Calculate the adjusted gross income.Identifies if the taxpayer has interest income and explains what the tax treatment is in this regard.List the exemptions to which the taxpayer is entitled. Case 1: Carlos OrtizCarlos Ortiz is married and has an administrator position in a private company. Carlos' salary for this taxable year was $50,000. He received an inheritance of $80,000 and $12,000 in interest from a cooperative of which he is a member. Carlos files jointly with his wife, who is disabled and receives $12,000 in social security a year. The couple has a 15-year-old son, who is a student.
