Tax Memo: Dependency Exemptions and Tax Planning

Note: (1) The building is subject to a nonrecourse liability of $10,000, which is assumed by the partnership.

More than 35% of American adults are obese and as a consequence, are at increased risks for health issues such as heart disease, high blood pressure, and diabetes ("Overweight & Obesity"). The U.S. taxpayer is supplementing much of the cost to treat obesity related health issues through public health programs such as Medicare and Medicaid ("Economic Costs"). A positive externality will occur in the form of decreased health care expenditures on Medicare and Medicaid. The U.S. government should impose an excise tax on soda and other beverages that contain sugar. Consumers who drink excess sugary beverages impose a negative internality on their health; as well as imposing a negative externality on the American

First guideline to meet is the relationship test. (i.e. parents, grandparents, aunt, uncle, some in law's, also non relatives can qualify as long as their living with the filer does not violate state law, and they also are not a spouse at any point during the filing year in question.) Once it is determined that an individual meets the qualifying relative guidelines then it must be determined if they meet the income guidelines. They must not have gross income more than the personal exemption amount for the calendar year. As long as the two previous guidelines are met then it is determined whether the filer provided more than ½ the support for the relative for the calendar year in question.

Issue e) What tax benefits would John realize if he invested $15,000 in Jane 's jewelry making?

Claimed as Dependent on someone’s return: may claim a standard deduction equal to the greater of 1) $1000 or 2) person’s earned income plus $350 up to standard deduction amnt of $6200 (for single individual)

Do the selected families utilize any government assistance? (Question 9) This will help determine the poverty level.

Ms. Apple is a 45 year old African American woman who has been a widow for about 4 years. Ms. Apple has three children, whose ages range from 5-12 years old. Ms. Apple has been struggling to keep her family afloat since the death of her husband. Ms. Apple convinced herself that she would not require the extra assistance. However, she realized in attempting to provide alone has not only become very strenuous, but also quite costly. Expenses have become overwhelming for Ms. Apple to maintain, since her husband took care of the finances and was the breadwinner for the family. Ms. Apple has minimal education as she is able to read and write at grade school level. Ms. Apple also has never been employed as she was a home maker. At this

Decades ago, state and federal legislatures began offering tax exemptions, including exemptions from property tax, for nonprofit institutions that provide charitable services to communities. Nonprofit hospitals that qualify for federal tax exemption under Internal Revenue Code §501(c)(3) are not guaranteed state charitable tax exemptions. A hospital must provide some amount of charity in order to be granted a state tax exemption, however historical statues have failed to quantify what amount of charity is sufficient to meet the charitable purpose exemption . In recent times, nonprofit hospitals repeatedly have to defend the amount of charity and benefit they provide to the community to maintain their state property tax-exempt status. There has been a recent, notable case where a hospital lost its property tax exemption. In the case of Provena Covenant Medical Center V. Illinois Department of Revenue, the Illinois Supreme Court held that PCMC does not provide enough charity care to qualify for tax exemptions provided for nonprofit organizations that provide charity care .

What some of the CPs do not take into consideration is: (1) What happens if the other person loses their job and they are depending on that money for the sole purpose of a specific payment; (2) What happens when the support obligation ends (such as it being factored into a 30-year mortgage); and, (3) What happens when a child needs reoccurring expenses, such as new clothes or school supplies. The child support agencies do not take into consideration if the CP is receiving any type of assistance from a State agency, employment, or other resources in paying their portion of one-half of these expenses. Matter of fact, while the NCP is then required to reimburse the State agency for the TANF, Medicaid expenses, in addition paying the above-mentioned fees, they are not entitled to get the relief of the earned income tax credit per the IRS statutes.

His annually income includes $65000 from self-employed business and $20000 from part-time job totally worth $85000. After contributing to superannuation, the taxable income is $80000; there is no Medicare levy since they have private health insurance. So the total tax is $17550, his take home income is $62450. Her take home pay is $601*52 equals $31252 per year, which is after tax amount. So their total take home income is $93702 per year ($7808.5 monthly)

1. All distributions (excluding reasonable salary) to Paula and Mary will be taxed as dividends to them. And the corporation could not deduct this part of distribution.

I discussed your case with our Quality Control Supervisor. When determining eligibility the state requires us to use the gross biweekly income and all other unearned income including 6 months of child support that's reported on the disbursement print out. Rent, Health Care cost and summer camp are not part of unearned income and cannot be considered when eligibility is being determined.

A tax shelter is technically a way to reduce your tax bill, and it generally relies on credits or deductions. It is not tax evasion. Tax evasion is illegal and will get you into trouble. Instead of moving your hard-earned wealth to a Caribbean shell company, use these legal tax shelters to minimize your tax bill.

The Tax Planning Activities worksheet can help Shelby to consider what tax savings she is eligible for and how to keep her from having to pay tax penalties from year to year (Kapoor, Dlabay, & Hughes, 2014). This spreadsheet is about making sure that she remembers to cover all the tax savings information so that she can make better decisions toward her financial planning. To start with Shelby will need to review her filing status because these may change due to life situations and the withholding amount may fluctuate due to the changes in her life that may occur. Also, if she finds herself owing a significant amount of taxes at the end of the year, she may want to consider making quarterly payments for the next year, so that it does not

Nobody wants insecurity in their lives. Especially monetary insecurity. Everybody wants to live a happy and prosperous life. However life can change unexpectedly, just one error or miscalculation, perhaps a bad investment, and you might find yourself in debt, maybe even with penalties. Something that can become a very serious financial issue. People in Brookings, like all cities across America, have fiscal responsibility for share of cost for all municipal services and roads provided by state and federal governments respectively. Failure to do so can have far-reaching repercussions that could bring you to the verge of bankruptcy! Though situations like these cannot