The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low-income working individuals and families (Internal Revenue Service, n.d.). Families with qualifying children can receive much more EITC than single workers who do not have any children…
is under 19 years old at the end of the year for which the claimant is claiming for the EITC or under 24 years old at the end of the year for which the claimant is claiming for the EITC or any age and permanently and totally disabled; and
The Child Tax Credit is a separate credit from the EITC. The Child Tax Credit is a nonrefundable credit and has a limit of $1,000 per qualifying child. The actual amount of Child Tax Credit is determined based on the income. The amount of Child Tax Credit is smaller if the adjusted gross income is more than: $110,000 and the filing status is married filing jointly, $75,000 and the filing status is single, head of household, or qualifying widow(er), or $55,000 and the filing status is married filing separately (Internal Revenue Service, 2004). In addition, the Child Tax Credit is basically limited by the amount of the income tax the parent owes as well as any alternative minimum tax the parent owes (Internal Revenue Service, 2006).
Parents who qualify for the Child Tax Credit may also qualify for the Additional Child Tax Credit. The Additional Child Tax Credit is a refundable credit and may give the parent a refund even if the parent does not owe any tax. The credit is for certain parents who receive less than the full amount of the Child Tax Credit (Internal Revenue Service, 2004). ...
Cite this document
(“Income tax accounting Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/303172-income-tax-accounting
(Income Tax Accounting Essay Example | Topics and Well Written Essays - 500 Words)
“Income Tax Accounting Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/miscellaneous/303172-income-tax-accounting.
The paper intends to examine and present importance of direct and indirect taxes and its implications; revenue generated by tax against total government spending; progressivity of income and corporation tax in UK; responsibility of notification of income and payment of tax for income tax and corporation tax separately.
The report will cover the following: the scope & core rules of income tax and corporation tax; direct taxes v indirect taxes; revenue generated by direct & indirect taxes; tax revenues & UK government expenditure; progressivity of income tax & corporation tax in the UK; responsibility of notification of income and payment of tax.
The argument presented is that the standards set by IAS 12 are too hard to apply or even understand. In the plight of these criticisms, two accounting standards boards, UK’s (ASB) and Germany’s (GASB) opted to conduct a proactive project plan aimed at fundamentally reviewing the standards set by IAS 12 prove hard to solve through piecemeal amendment.
In situations where transactions are accounted for outside profits or loss, this standard has offered specific provisions. In case of the transactions that are recognised directly in equity, any associated tax implications are also recognised directly in equity, while those that are recognised in comprehensive income have their associated tax implications recognised in comprehensive income.
Fellows and Jewell discuss how S corporation taxpayers attempt to circumvent employment taxes through the following methods: masking distributions as wages, loans to shareholders, and income distributions to the SE. Another method used was dubbed the 530 plan, in which corporation presidents appointed themselves independent contractors.
In 1939 Congress codified the Federal tax laws" ("Tax Law and Accounting," 2009).
The aspect of modern income tax statutes that undeniably upset people the world over is that the tax law continually changes. Not only that, but it happens to be very complicated.
Interest paid on money to buy or carry investment property that produces taxable income is also deductible on Schedule A, but under section 163(d) the deduction cannot exceed the net investment income. Commissions and other costs of acquiring or disposing of securities are not deductible but must be used to figure gain or loss upon disposition of the securities.
Regressive tax is a tax levied in such a way that as the amount subject to taxation increases the tax rate decreases. In other words, a regressive tax asserts a greater burden on the poor than on the wealthy people — there is an inverse relationship
The Act defines business income as the income arising from regular taxpayer’s activities of trade, transactions, and income earned from acquisition, management, and disposition of tangible and intangible property.
4 Pages(1000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Income tax accounting for FREE!