BUS 3302 Lecture Notes - Lecture 3: Tax Rate, Alternative Minimum Tax, Gross Income
Document Summary
Section 3-1 : understanding federal income tax principles. The objective of tax planning is to maximize the amount of money that one can keep legally by minimizing the amount of taxes paid. Minimum filing amounts are adjusted annually based on the annual rate of inflation. If an individual had any income tax withheld during the year, they must file a tax return, even if their income falls below the minimum filing amount to receive a refund of the income tax withheld. Individuals will then receive a refund from the irs if too much tax was withheld from their paycheck or pay additional taxes if the amount withheld did not cover the tax liability. Old-age, survivor"s, disability, and hospital insurance tax levied on both employer and employee: take-home pay : the amount an individual is left with after subtracting the amount withheld from their gross earnings. Section 3-2 : it"s taxable income that matters.
