"Analyzing Income Tax Implications" Cycle I and II

This paper exit analyse the simulation about Analyzing Income receipts Implications Cycle I and II. Although some parts of the simulation were very(prenominal) natural in essence it still provided many examples that apply the decision-making process. at heart this paper, I will be describing the two round and the proceeds results. The first cycle of analyzing income valuate computations deals with the Lawrence family, Spencer and Patricia, who file jointly, and essential to bash if they check dependence exemptions for their son, Kenneth, and Patricias mother, Gillian, in the current year. afterward analyzing each(prenominal) the data provided, I had to determine if the habituation footrace for Kenneth and Gillian were met. The dependency exemption consists of five tests, all which must be met. I used the textbook and the information tabs provided to help me in my dependency decision-making process. First was the citizenship test. Both Kenneth and Gillian are U. S. c itizens. Next was the alliance test. To fit out the relationship test the person must be cogitate according to the criteria listed or the person must have been a member of the household for the entire year. Both passed this test. neither Kenneth nor Gillian will be filing a joint assess publication so the joint return test is not an issue. pure(a) income was next.

Although Kenneths income is over the 3,100 limit, Kenneth qualifies because he is a student chthonian the term of 24 years old, and his parents provide over half of the small fry hold in in the tax year. Gillian qualifies as substantially because her stark(a) income o f $12,000, even though it is over the limit,! is from Social security measures which is tax exempt. The final test was the support test. Kenneths parents spent $5,500 on support which is more than 50% of his expenses of $9,500. Therefore, If you want to get a profuse essay, order it on our website: BestEssayCheap.com

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