TAX 3300 Chapter Notes - Chapter 3: Child Tax Credit, Adjusted Gross Income, Term Life Insurance
Document Summary
Income does not include a return of capital or receipt of borrowed funds. All of taxpayers income, both taxable and nontaxable. Ex. receipt of borrowed funds: 200,000 bank loan. Ex. receipt of capital:building owner returns damage deposit | 28,000 cost of stock. Cost of living allowance ( for military) damages for personal injury or sickness. Group term life insurance, premium paid by employer( coverage up to 50,000) Gross income: except as otherwise provided all income from whatever source derived. Expenses incurred in a trade or business. Fees for college tuition and related expenses. The 2017 personal and dependency exemption amount is 4050. Itemized deductions: include medical expenses, certain taxes and interest an charitable contributions. Standard deduction:depends on filing status of taxpayer. Taxpayer over 65 or blind qualifies for an additional standard deduction of. Compare total standard deduction with total itemized deductions. Limitations on the standard deduction for individuals who can be claimed as dependents.
