MGMT 1B Lecture Notes - Lecture 12: Adjusted Gross Income, Credit Card Interest, Standard Deduction
Document Summary
Week 6: income taxes: tax equation, total income. Deductions from gross income: = adjusted gross income ( the line ) Itemized deductions (or standard deduction, if greater) Personal exemptions: = taxable income, compute tax - tax credits, = t ax liability, compare with withholding and estimated tax payments, = refund due to us or additional tax due to the irs. Less exclusions from total income: interest on municipal bonds (bonds issued by city), portion of scholarships or fellowships spent on tuition and course-required materials, life insurance proceeds, inheritance. = gross income: deductions from gross income, self-employed business expenses (only 50% of entertainment expenses is deductible). Ira"s (traditional or roth: traditional: deduct money now, taxed on money when you retire and take money out, roth: no deductions now, not taxes later on, alimony paid. Saturday, february 18, 2017: net capital losses (not to exceed ,000 per year, moving expenses new job 50 miles away from your old job.
