Personal expenses are deductions:     a. for AGI     b. always deductible.     c. Deductions from AGI     d. non of the above.

Q: Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form…

A: Deduction: It is the expense which is subtracted from the taxable income of the tax payer.…

Q: The 0.9 percent Medicare tax applies to: a.Earned income b.Tax exempt income c.Gain on the sale of a…

A: Medicare tax is an additional tax. It has been introduced since 2013 as part of the Affordable Care…

Q: rent income received by a lessor is not reportable as taxable

A: Income received means the amount of money received in respect of income generating activity. Income…

Q: Required information Use the following information for the Exercises below. (Algo) [The following…

A: FUTA is a federal tax that funds unemployment benefits for workers who lose their jobs.SUTA is a…

Q: 1. All of the following are examples of legal liabilities, except for a. notes payable b. sales…

A: A. NOTES PAYABLE (ARISE OUT OF A CONTRACT) B. SALES TAX PAYABLE (IMPOSED BY GOVERNMENT) D. PROPERTY…

Q: Which of the following is a deduction for AGI?

A: The concept of "deduction for AGI" (Adjusted Gross Income) refers to expenses or contributions that…

Q: Deductions from gross income are allowed to the following income earners, except:  a. Compensation…

A: Gross income refers to the income earned by the entity exclusive of any deduction.

Q: Which of the following is incorrect? a. Contributions to a traditional IRA are a deduction for AGI.…

A: Gross income less adjustments to income is known as adjusted gross income (AGI). Your earnings,…

Q: resident of the Republic may pay tax

A: A resident of South Africa is liable to pay tax to SARS on his/her income across the world.

Q: a. Deductions b. Exceptions c. Exclusions d. Any of the above

A: Computation of  Total Taxable Income  1 Income under head Salary XXXX 2 Income under head…

Q: In each of the following independent cases, indicate the amount (1) deductible for AGI, (2)…

A: The purpose of allowing deductions is to provide relief to taxpayers for expenses incurred in the…

Q: Personal income taxes are paid on all of your income. a. true b. false

A: Personal income tax is paid on taxable income of an individual. Taxable income is calculated as…

Q: Select all of the following that qualify as Exclusions from Income that can be excluded in…

A: Gross income refers to the income of an individual or a company from all the resources. This income…

Q: In lieu of itemizing  deductions, a taxpayer can elect to use or claim:     a. deduction for AGI…

A: Taxpayer can choose itemized deduction in lieu of standard deduction. Itemized deduction means those…

Q: deductions from gross income? *

A: Correct Answer :- C   discounts given to senior citizens on certain goods and services.

Q: What AMT adjustment items are likely to affect all taxpayers who itemize their deductions? Please…

A: AMT(ALTERNATE MINIMUM TAX) The purpose of AMT is to ensure everyone pays a minimum amount of tax. It…

Q: Statement 1: Life insurance premiums shall be reported as a deductible expense for financial…

A: Tax is the liability that person owes to the government.

Q: 1.The definition of gross income in the tax law is: A. All items specifically listed as income in…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Two reason why expenses may not be deductiable for income tax/ corporatiion tax purposes.

A: Deductible expenses: These include all the expenses that are allowed to be deducted from the gross…

Q: The maximum business expense deduction for gifts to customers and clients is?

A: The maximum business expense deduction allowed is $25 per person in case of gifts given to our…

Q: income recieved but service not rendered, Please suggest the JE

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: Which of the following taxes would be deducted in determining an employee’s net pay? a. FUTA taxes…

A: Net pay: It can be defined as the amount that is taken by an employee to its home in the form of…

Q: Which of the following items can be deducted from total income for tax purposes? O A. Child care…

A: Answer:-  Income tax meaning:- Income taxes are levied against both businesses and individuals.…

Q: The formula for Adjusted Gross Income (AGI) is: Gross Income - Exclusions Gross Income - Deductions…

A: Adjusted Gross Income (AGI) is a key financial metric used in the United States to determine an…

Q: Income

A: An individual retirement account or IRA is a gateway to save for retirement and cut down taxes as…

Q: Elements of gross income

A: Option B is wrong because realized income is an element of gross income. Option C is wrong because…

Q: When DTA reverses, income tax payable is reduced, while when DTL reverses, income tax payable is…

A: Temporary differences are differences between book income and taxable income of the business. These…

Q: When is income recognized for a cash method taxpayer vs. an accrual taxpayer? Explain the hybrid…

A: Under the cash-receipts method, cash, property, or services are included in the taxpayer's gross…

Q: Under the cash method of tax accounting, tax deductions are taken when: a, Expenditures are made…

A: Answer: Under the cash method of tax accounting, tax deductions are taken when expenditures are…

Q: The Internal Revenue Code contains three general categories of currently deductible expenses…

A: THE CATEGORIES WHICH ARE NOT INCLUDED ARE  1. EXPENSES INCURRED FOR PERSONAL EXPENSES 2. EXPENSES…

Q: For an accrual basis taxpayer, which of the following statements is TRUE  regarding prepaid income?…

A: In accrual basis of accounting, when any amount is received against a service which has not yet been…

Q: Which of the following expenses apply to or may be claimed by cash basis taxpayers?  a. Depreciation…

A: Under a cash basis, the cash received and cash paid is considered for calculating the income and…

Q: statements is true? A.Deductions are not allowed unless there is a specific law authorizing the…

A:

Q: Explain three main reasons expenses may not be deductible for income tax/corporation tax purposes.

A: Business expenses: These are costs you incur while operating your business. Expenses are recorded on…

Q: An above-the-line deduction reduces both adjusted gross income and taxable income.

A: The taxable income and the adjusted gross income is the income earned by the individual or company…

Q: During the accumulation period, how is the interest credited to an annuity generally taxed in regard…

A: An annuity, in terms of taxation, is straightforward. When individuals receive regular payouts from…

Q: 5. Related to insurance, what is a deductible and how does it

A: In insurance scheme there is always mentioned deductible amount.

Q: The following are exclusions from gross income, except    Proceeds of life insurance policies.…

A: The income earned by an individual before any deductions and allowances is considered Gross Income.

Q: Taxable income is  a) gross income less deductions  b) total income excluding exempt less…

A: Taxable income is the income on which tax is computed.

Q: The following are generally non-taxable income, except:  A. Stock Dividend B. Compensation for…

A: The person would not be taxed if the source of income is a stock dividend, receipt from farming, or…

Q: . As distinguished from deductions, tax credit is a. A deduction from gross sales/receipts b. A…

A: Tax deductions are the amount which can reduce from taxable income. After such deduction, remaining…

Q: A purpose of an adjustment to income is to (option: a.reduce gross income? b. help determine gross…

A: The purposes of adjustments to income in the context of U.S. taxation are as follows:Purpose of an…