"Analyzing Income Tax Implications" Cycle I and II

This paper go out go the simulation about Analyzing Income receipts Implications Cycle I and II. Although whatever parts of the simulation were very(prenominal) innate in essence it unbosom appendd many examples that apply the decision-making process. inwardly this paper, I will be describing the two round and the resultant results. The first cycle of analyzing income valuate computations deals with the Lawrence family, Spencer and Patricia, who file jointly, and essential to have it away if they check habituation exemptions for their son, Kenneth, and Patricias mother, Gillian, in the current year. afterward analyzing tot altogethery the data provided, I had to observe if the dependance 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 breeding tabs provided to help me in my dependency decision-making process. First was the citizenship test. Both Kenneth and Gillian argon U. S. citizens. Next was the alliance test. To stir the relationship test the mortal must be think according to the criteria listed or the person must have been a member of the household for the effective(a) year. Both passed this test. neither Kenneth nor Gillian will be filing a joint appraise refund so the joint hand everyplace test is not an issue. unrefined income was next.

Although Kenneths income is over the 3,100 limit, Kenneth qualifies because he is a student chthonian the get along of 24 years old, and his parents provide over half of the barbarian backup in the assess year. Gillian qualifies as substantially because her swinish income of $12,000, even though it is over the limit, is from Social security measures which is tax exempt. The final test was the deport test. Kenneths parents spent $5,500 on support which is more than 50% of his expenses of $9,500. Therefore, If you hope to get a full essay, order it on our website: Orderessay

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