FHCE 3200 Lecture 8: tax

• School: University of Georgia
• Department: Financial Planning, Housing and Consumer Economics
• Course: FHCE 3200
• Professor: Goren

Document Summary

Taxes are financial obligations imposed on individuals and businesses by government entities. Scholarships and grants in excess of education costs. Pensions and tax deferred retirement plan distributions. Up to 50% of social security income. Roth ira distributions after age 59 (cid:862)for agi(cid:863) deductions. Starting a small business even one that is not very profitable can save you thousands in taxes! These deductions are specific expenses are allowed by congress to 1) support small business and 2) encourage savings. Saving for retirement can save money now! (cid:862)fro(cid:373) agi(cid:863) dedu(cid:272)tio(cid:374)s. Flat deduction amount (,350 single, ,700 mfj) State and local taxes including property and income. Interest paid on mortgage debt of primary home. After (cid:862)for(cid:863) a(cid:374)d (cid:862)fro(cid:373)(cid:863) agi dedu(cid:272)tio(cid:374)s, (cid:455)ou also dedu(cid:272)t . Ta(cid:454)a(cid:271)le i(cid:374)(cid:272)o(cid:373)e is the (cid:862)(cid:271)ase(cid:863) upo(cid:374) (cid:449)hi(cid:272)h the i(cid:374)(cid:272)o(cid:373)e ta(cid:454) is (cid:272)al(cid:272)ulated. Tax amount = tax base* tax rate. Ca(cid:374) redu(cid:272)e a filer"s i(cid:374)(cid:272)o(cid:373)e to sh. Ca(cid:374) redu(cid:272)e a filer"s i(cid:374)(cid:272)o(cid:373)e to (cid:271)elo(cid:449) sh.