Determining your tax
Download
1 / 21

D ETERMINING YOUR TAX LIABILITY - PowerPoint PPT Presentation


  • 248 Views
  • Updated On :

D ETERMINING YOUR TAX LIABILITY. 58. Gross income - Adjustments ____________________ Adjusted gross income - Deductions - Exemptions ____________________ Taxable income. D ETERMINING YOUR TAX LIABILITY. 58. Taxable income Tax - Credits + Other taxes ____________________ Taxes due.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'D ETERMINING YOUR TAX LIABILITY' - Angelica


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
D etermining your tax liability l.jpg
DETERMINING YOUR TAX LIABILITY

58

Gross income- Adjustments____________________ Adjusted gross income- Deductions- Exemptions____________________ Taxable income


D etermining your tax liability3 l.jpg
DETERMINING YOUR TAX LIABILITY

58

Taxable income

Tax- Credits+ Other taxes____________________Taxes due


M arginal tax brackets l.jpg
MARGINAL TAX BRACKETS

59

Over $297,350

Over $297,350

39.6%

39.6%

$297,350

$297,350

36%

36%

$136,750

$166,500

*2001brackets

31%

31%

$65,550

$109,250

28%

28%

$27,050

$45,200

15%

15%

SINGLE

MARRIED FILING JOINTLY


M arginal tax brackets5 l.jpg
MARGINAL TAX BRACKETS

59

Over $148,675

Over $297,350

39.6%

39.6%

$148,675

$297,350

36%

36%

$151,650

$83,250

*2001brackets

31%

31%

$54,625

$93,650

28%

28%

$36,250

$22,600

15%

15%

MARRIED FILING SEPARATELY

HEAD OF HOUSEHOLD


D eductions and exemptions l.jpg
DEDUCTIONS AND EXEMPTIONS

  • Standard or itemized deductions

  • Personal exemptions

  • Phaseout for high-income taxpayers


T ax credits l.jpg
TAX CREDITS

  • Child care credit

  • Credit for the elderly or disabled

  • Earned income credit

  • Child tax credit

  • Education credits


W hat can you do to minimize your income tax liability l.jpg
WHAT CAN YOU DO TO MINIMIZEYOUR INCOME TAX LIABILITY?


F requently overlooked considerations l.jpg
FREQUENTLY OVERLOOKED CONSIDERATIONS

  • Filing status

  • All possible exemptions

  • Withholding

  • Flexible spending accounts


T ax reduction strategies l.jpg
TAX-REDUCTION STRATEGIES

63

1. Contribute to an employer-sponsored retirement plan or tax-deductible IRA

2. Convert nondeductible consumer interest

3. Donate appreciated assets

4. Document your deductible expenses

5. Consider your investments


H ome ownership l.jpg
HOME OWNERSHIP

  • Mortgage interest

  • Real estate taxes

  • Sale of principalresidence exclusion


I ncome splitting l.jpg
INCOME SPLITTING

  • Employment

  • Investments


T axing children s income l.jpg
TAXING CHILDREN’S INCOME

Under Age 14Earned Income Rate

$ 0 - $4,550 Exempt

Over $4,550 Child’s Rate

Unearned Income Rate

$ 0 - $750 Exempt

$751 - $1,500 15%

Over - $1,500 Parents Rate


T ax favored investing l.jpg
TAX-FAVORED INVESTING

66

1. Tax-exemptalternatives

2. Tax-deferredalternatives


T ax exempt alternatives l.jpg
TAX-EXEMPT ALTERNATIVES

  • U.S. Treasury securities

  • Series EESavings Bonds

  • Municipal bonds


T ax deferred alternatives l.jpg
TAX-DEFERRED ALTERNATIVES

Employer-sponsored retirement plans

  • Corporate pension plans

  • Profit-sharing plans

  • 401(k) and 403(b) plans

  • SEPs

  • SIMPLE plans

Keogh plansIRAs


E mployer sponsored retirement plans l.jpg
EMPLOYER-SPONSOREDRETIREMENT PLANS

Savings Account Employer-Sponsored

Plan

Amount saved$10,500$10,500

Taxes (28%)(2,940)0

Amount saved, after taxes7,56010,500

Annual return (6%)454630

Taxes (28%)(127)0

Ending balance$7,887$11,130*

*The full value of the employer-sponsored plan will be subject to regular income taxes upon withdrawal.


A nnuities l.jpg
ANNUITIES

  • Fixed

  • Variable


L ife insurance l.jpg
LIFE INSURANCE

  • Whole life

  • Universal life

  • Variable universal life


W hat if you get audited l.jpg
WHAT IF YOU GET AUDITED?