ACCT 3221 Chapter : CHAPTER 3 OUTLINE
Document Summary
If taxpayer did not itemize deductions in the prior year, no amount of the refund is taxable: unemployment compensation, federal and state unemployment compensation benefits are taxable, social security benefits, provisional income, agi (before social security benefits) + interest on savings bonds, tax-exempt interest, employer-provided adoption benefits, foreign income, deducted interest on education loans, deduction tuition and fees. If provisional income exceeds certain thresholds, then you pay certain amounts: married filing jointly. Plus: ,000 or 50% of benefits, single, hoh, mfs, qw. If provisional is below lower limit, no benefits are taxable. If provisional is between two limits, pay lesser of: 50% of social security benefits, 50% of the excess of provisional income over lower limit. If provisional is above upper limit, pay lesser of: 85% of social security benefits, 85% of excess of provisional over upper limit. Plus: other income, prizes and awards, ,500 or 50% of benefits.
