How does tax credit affect you?
It lowers the taxes you owe.
You are a divorced parent with a child. What will you file as?
Head of Household
The outcome of subtracting deductions from Gross Income.
Adjusted Gross income
You have an AGI of $87,000 and the standard deduction is $15,000. What is your taxable income?
$72,000
You are married and your partner has large amounts of debt. What should you file as?
Married filing Separately
When you are feeling generous and give these out, you can deduct the amount from your taxes
What are charitable donations
Minimum amount of time a qualifying relative must live with the taxpayer.
1 year or the entire tax/calendar year.
I am a 23 year old, full-time college student. What am I labeled as?
Qualifying Child
Your at a casino, you win $10,000 on a slot machine. What kind if income is this, is this taxable?
Unearned Taxable Income
Which comes first: calculating AGI or applying deductions?
calculating AGI
How does tax credit affect your taxable income?
It does not, it only affects the taxes you owe.