Essay on Income Tax Fundamentals - 1617 Words

Chapter 1 – Cumulative Software Problem Answer 1-1 Comprehensive Problem 2 1040 Form Department of the Treasury—Internal Revenue Service (99) U.S. Individual Income Tax Return Last name 2011 , 2011, ending OMB No. 1545-0074 , 20 IRS Use Only—Do not write or staple in this space. * For the year Jan. 1–Dec. 31, 2011, or other tax year beginning Your first name and initial If a joint return, spouse’s first name and initial See separate instructions. Your social security number Spouse’s social security number Ivan I. Incisor Last name Irene I. Incisor Home address (number and street). If you have a P.O. box, see instructions. 468 Mule Deer Lane City, town or post office, state, and ZIP code. If you†¦show more content†¦. . . . . . . . . 23 24 25 26 27 28 29 30 31a 32 33 34 . . . . . . . . . . . Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ Health savings account deduction. Attach Form 8889 . Moving expenses. Attach Form 3903 . . . . . . Deductible part of self-employment tax. Attach Schedule SE . Self-employed SEP, SIMPLE, and qualified plans . . Self-employed health insurance deduction Penalty on early withdrawal of savings . . Alimony paid b Recipient’s SSN IRA deduction . . . . . . . Student loan interest deduction . . Tuition and fees. Attach Form 8917 . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,380 Adjusted Gross Income Domestic production activities deduction. Attach Form 8903 35 Add lines 23 through 35 . . . . . . . . . . . . . Subtract line 36 from line 22. This is your adjusted gross income 36 37 65,380 Form For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B 1040 (2011) * The 2012 version of this form is not available as we go to press. Please see the Web site for the text at www.cengage.com/taxation/whittenburg for solutions updated to 2012 forms. Chapter 1 – Cumulative Software Problem Answer 1-2 Comprehensive Problem 2, cont. Form 1040 (2011) Page 2 Tax and Credits Standard Deduction for— †¢ People who check any box on line 39a or 39b or who can be claimed as a dependent, seeShow MoreRelatedTax Revenue Is The Source Of Funding For Public Education1176 Words   |  5 Pages Tax revenue is the source of funding for public education. Taxes can be progressive or regressive, depending on its impact on the taxpayer. A progressive tax is one in which the tax rate increases as income does. The federal income tax structure is an example of a progressive tax. A Regressive tax is one in which the tax rate is uniform and therefore, the regressive tax takes a larger percentage of available funds from lower-income individuals than from higher-income individuals. 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