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Are taxpayers allowed to deduct certain expenses from their total income before paying federal income taxes?
Wiki User
∙ 14y ago
The key word being "certain". But understand that income is defined differently for every purpose...and tax is no exception...so some things you may consider income aren't and some things you may never have considered are too.
They start with the total worldwide gross income from all sources that is reported on the 1040 income tax form.
Then they have some adjustment to income (subtracted from the total income)
Then they have their adjusted gross income amount.
From that they can take a standard deduction amount that applies to their filing status that they claim in the tax form.
Or they can choose to use the schedule A itemized deductions of the 1040 tax form if this amount is more than the standard deduction amount it would reduce the income tax liability more than the standard deduction would.
Then from the total amount after that they would subtract the exemption amount for each qualified exemption that is claimed on the 1040 tax form.
Then you are on the line that says TAXABLE INCOME
After that they may qualify for some nonrefundable tax credits and possibly for some refundable tax credits and then maybe some other taxes before coming up with the federal income tax liability for the year.
Wiki User
∙ 14y ago
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What are tax preferences?
Provisions in the federal income tax system designed as incentives for certain behaviors or as subsidies for targeted activities.These preferences are based on assumptions about how taxpayers react to the law.
Are federal tax payments deductible expenses for a corporation?
No
Why does the federal government collect income taxes in installments rather than waiting until the end of the year?
The Federal government give taxpayers the option to pay their income taxes in installments to make it easier on people with limited incomes. Also, this allows taxpayers to adjust their payments so that if there is an increase or decrease in their income, they can still have paid their proper taxes by the end of the year.
Why does the federal governments collect income taxes in installments rather than waiting until the end of the year?
The Federal government give taxpayers the option to pay their income taxes in installments to make it easier on people with limited incomes. Also, this allows taxpayers to adjust their payments so that if there is an increase or decrease in their income, they can still have paid their proper taxes by the end of the year.
What are federal allowances?
Generally things to either ease the accounting for, or control the tax benefit from items effecting a tax return. For example, certain auto/travel expenses are deductible. The amount spent can be difficult for many people to keep track of exactly, so there are standards set, that with limited documentation are allowed. A rate per mile. Yours may well have been different..higher or lower..but the IRS will allow that.
Us taxpayers are allowed to deduct certain expenses from their total income before paying federal incometaxes?
Go to the IRS.gov website and use the search box for Tax Topics - Topic 500 Itemized Deductions the following topics are found in the category of Itemized Deductions. Each topic is followed by a corresponding number. To access your topic, select the three-digit number.Publication 529 (2009), Miscellaneous Deductions
What are preferences?
Provisions in the federal income tax system designed as incentives for certain behaviors or as subsidies for targeted activities.These preferences are based on assumptions about how taxpayers react to the law.
What are tax preferences?
Provisions in the federal income tax system designed as incentives for certain behaviors or as subsidies for targeted activities.These preferences are based on assumptions about how taxpayers react to the law.
What is federal revenue?
AnswerTaxes, taxes and more taxes
Who pays for education in Puerto Rico?
Practically the Federal Government and the taxpayers that live in Puerto Rico.
What penalties are incurred from early withdrawal of funds from a 401k account?
There is no penalty if the money is used for certain emergencies such as medical expenses. Standard penalties are 10% federal and you also need to pay federal and state income taxes.
is there federal aid for low income people for funeral and burial expenses?
is ther federal aid for low income people to pay for funeral and burial expenses?
Are federal tax payments deductible expenses for a corporation?
No
Do attorneys pay taxes?
Yes they do the same as other taxpayers filing the 1040 federal income tax return.
Which executive agency was created to prepare and administer the federal budget?
The Agency of Federal Costs and Expenses (AFCE)
Who pays for home schooling?
That is decided at the state level. For example, Alaska offers a stipend to purchase homeschool curricula and supplies. Texas does not pay anything. It is more typical for states not to pay anything. There are no federal stipends or tax breaks for homeschooling. Homeschooling parents are not even allowed to take the $250 federal deductible that conventional teachers are allowed to take for out-of-pocket expenses.
How can one obtain a Federal Tax Relief?
You can get federal tax relief for your allowable expenses by letter, phone or filling in a P810 tax review or by filling in a form for P87 tax relief for expenses of employment.
