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The total income of an individual minus certain deductions and personal exemptions is called?
Wiki User
∙ 14y ago
its your taxable income
Wiki User
∙ 14y ago
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What is tax expenditure?
are losses to the U.S. treasury from granting certain deductions, exemptions and credits to specific categories of taxpayers.
Federal Tax Deductions?
Federal tax deductions are items subtracted from the taxpayer' gross income and are not factored in calculating the income tax of the taxpayer. There are dozens of available deductions for many taxpayers, depending on their income bracket and how their income was used throughout the year. Unlike tax credits, deductions are utilized before the tax is calculated For example, an individual earns $50,000 per year, and is eligible for a $5,000 IRA tax deduction. The taxable income of the taxpayer is reduced by $5,000 and the tax is calculated on the remaining $45,000 of income. Because the US tax system is progressive, with higher tax brackets as income increases, the deduction is worth more in real dollars for someone in a higher tax bracket. Thus, the $5,000 deduction is worth $1,250 for someone in the 25% tax bracket ($5,000 X .25 = $1,250) as opposed to a tax savings of $750 for someone in the 15% bracket. Some federal tax deductions may be taken regardless of other deductions made by the individual, others can only be taken if the individual's total deductions exceed their Standard Deduction. The standard deduction is the minimum deduction allowed for all taxpayers. The IRA deduction, stated above, can be taken by anyone, regardless if they itemize their deductions. Other deductions of this type are student loan interest deductions, alimony paid, contributions to a health savings account and deductions for health insurance premiums by a self employed individual. Deductions for mortgage interest paid, most state taxes paid charitable deductions, medical expenses exceeding 7.5% of adjusted gross income, theft and casualty losses, and certain job expenses are examples of the latter type of deductions. They are reported on Schedule A. They may only be used if the total of all of the deductions of this type exceed $5,800 for a single taxpayer and $11,600 for married persons filing jointly. Though a person may itemize, if their deductions do not exceed the standard deduction rates, they are better off using the standard deduction. There are other deductions available to those who qualify. Certain taxpayers may be able to deduct the cost of operating a vehicle when it is used for company business or education expenses for some. Businesses and corporations have many more deductions available. However, these deductions are often geared to the cost of doing business, and attempt to separate gross profit from net profit. Thus, businesses will be able to utilize deductions such as fuel costs, utilities, depreciation, cost of labor, etc. A self employed individual is normally permitted to utilize many of these deductions.
Indian income tax?
tax is important sources of government. it meet all the expenss of human wellfare, developments so it chareged or levied by individual, HUF, fir and companies earning incomes or profit.Answer:Every individual who earns an income in India is entitled to pay Tax on the Income earned by him during that financial year to the government of India. Calculation of the Income Tax to be paid by an individual is a cumbersome process. The government of India provides certain benefits to its citizens who earn an income in the country by means of deductions, exemptions etc.1. Salaries & Wages2. Bonus & Commissions3. Other Perquisite benefitsAre all considered for the purpose of taxation in India
What is the rate of tax for partnership firm?
A partnership computes its income and files its return in the same manner as an individual. However, certain deductions are not allowed to the partnership.Go to the IRS.gov website and use the search box for Tax Information For Partnerships Partnership Income or Loss
What is Gross income after certain deductions are calculated is called?
I suspect you're talking about AGI, Adjusted Gross Income.
What is tax expenditure?
are losses to the U.S. treasury from granting certain deductions, exemptions and credits to specific categories of taxpayers.
If someone is sued for a second time and they only have there exemptions from the last lawsuit do they have to give up those exemptions in order to pay the debt?
No, the exemptions allowed are not subject to forfeiture. When a person is sued numerous times the same exemptions will apply in each lawsuit judgment. It would be in the best interest of the debtor to review their exemption status to be certain they are protecting all personal and real property that is allowed according to their state laws. There are also federal non-bankruptcy exemptions that can be used by the debtor if they are applicable to the individual's situation.
What is a personal moral?
Personal moral is an ethics or set of beliefs that are usually personal and unique to a certain individual. It usually does not apply to everyone and is very important to an individual.
What does head of household mean on tax form?
Head of household is a filing status on tax forms for individuals who are unmarried or considered unmarried for the tax year, have paid more than half the cost of keeping up a home, and have a qualifying dependent. This filing status typically offers more favorable tax rates and a higher standard deduction compared to filing as single.
Is personal income released to the public?
No not under normal conditions. An individual personal income would not be released to the public unless the individual agreed to have certain information released to the public.
What can you lose in bankruptcy?
This is largely dependent on the chapter of bankruptcy that you're filing under. Is it for an individual? Is it for a business or a corporation. I will take the most common type of bankruptcy-Chapter 7-for an example. Under Chapter 7, the bank is technically allowed to take personal assets and property and liquidate it/them in an attempt to pay back debtors. But there are a number of exemptions and for many people, they do not lost personal items after filing for Chapter 7. Common exemptions when filing for bankruptcy include tools of the trade-such as a car that is used to commute to and from work-and clothing under a certain dollar amount. The article below lists many of the possible exemptions for different chapters.
Tax Law?
Tax law is governed by the IRS Code, a more than thousand page work of Congress that governs when individuals and businesses are taxed, how much they are taxes, and the appropriate times when they can take deductions, exemptions, and credits. Tax law governs the ways in which businesses and employees categorize certain expenses and certain forms of income.
What is the maximum amount of personal income tax in the US that has to be paid?
There is no maximum. Earnings above a certain amount (after deductions) are taxes at a fixed percentage rate..that will not change regardless of how much is earned.
What does it mean in bankruptcy if a state doesn't allow federal exemptions?
That means your state doesnt allow a debtor to use federal exemptions in order to keep items/property of a certain value. If your state doesnt allow federal exemptions, then the state will have their "own" BK exemptions.
Are senior citzens exempted from paying income tax?
In some countries, seniors may qualify for certain tax exemptions or deductions, but generally, seniors are not automatically exempt from paying income tax. The tax rules may vary based on the individual's income level, sources of income, and age. It is best to consult a tax advisor or the local tax authority for specific information regarding tax obligations for seniors in a particular country.
What states have property tax exemptions?
All of the states in the United States have property tax exemptions for government owned properties (local, state, and federal), certain educational organizations, qualifying religious organizations, and certain qualifying nonprofit organizations.
Income from all sources is taxed unless specifically exempted by?
the tax laws of a particular country. Some common sources of income that are typically taxable include wages, salaries, investment profits, rental income, and self-employment income. However, there may be specific exemptions or deductions allowed for certain types of income, such as certain allowances or benefits provided by employers, or income earned in certain tax-exempt investments.
