Theme: Adjusted Gross Income as determined by the IRS of USA. Examine the case below and do the following: 1.Indicates the income items that are part of the gross income. 2.Indicates the salary exclusions. 3.Identify the deductions to which the taxpayer is entitled to calculate the adjusted gross income. 4.Calculate adjusted gross income. 5.Indicates the status that the taxpayer must file. 6.Fill out Form 1040. Case 2 Carlos Martínez was born on January 9, 1967, is a teacher and is married. He had a salary of $50,000 and a tax withheld of $5,000. Carlos pays an individual retirement account (IRA) for himself of $7,000. His wife, Carmen Flores, was born on April 22, 1971, she works from home selling clothes, from which she had an income of $12,000. The couple have no children and have a joint bank account from which she earned $2,500 in interest from the bank.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Theme: Adjusted Gross Income as determined by the IRS of USA.

Examine the case below and do the following:
1.Indicates the income items that are part of the gross income.
2.Indicates the salary exclusions.
3.Identify the deductions to which the taxpayer is entitled to calculate the adjusted gross income.
4.Calculate adjusted gross income.
5.Indicates the status that the taxpayer must file.
6.Fill out Form 1040.
Case 2

Carlos Martínez was born on January 9, 1967, is a teacher and is married. He had a salary of $50,000 and a tax withheld of $5,000. Carlos pays an individual retirement account (IRA) for himself of $7,000. His wife, Carmen Flores, was born on April 22, 1971, she works from home selling clothes, from which she had an income of $12,000. The couple have no children and have a joint bank account from which she earned $2,500 in interest from the bank.

 

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