In this presentation, we'll look at tax software for some scenarios related to interest income. For more accounting information and accounting courses, visit our website at accountinginstruction.info. For scenario T, we have a single individual with no dependents. If we go to page 2, this is where we will report the income. So, we have the wages, which are $100,000 of W-2 wages. The new item here is the $310 of interest income in the income section, bringing the income up to the total income line, $100,310. Then, we have the adjusted gross income with no adjustments, $100,310. The standard deduction for a single individual is $12,000, bringing the taxable income down to $88,310. The tax is going to be calculated on that at 15,488, making our total tax $15,488. Note that we do not see the Schedule B being highlighted by this particular type of tax software, because it's not something that is required. It's below the threshold to need any added reporting requirements. Other than this, we do have a schedule and a worksheet here that reports bank one, but we don't have a Schedule B required in this situation. It doesn't hurt for more detail, but it's not a requirement. If we then take a look at the tax summary, scrolling down, we're going to say that the marginal tax rate is 24% and the effective tax rate is 17.50%. Now, we've changed the scenario by increasing the interest by another $2,000. So now, we can see that we're at $2,310, bringing the $100,000 W-2 income up to $102,310. We've got the $12,000 standard deduction, $90,310 taxable income, and $15,968 tax. Now, we can see that the Schedule B is something that's going to be required, indicated by this particular software as it being highlighted. If we...
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1040 - Schedule M Form: What You Should Know
Schedule M (Form 990-B) — IRS Schedule M (Form 990-B) is used by an organization that files Form 990 to report the types of noncash contributions received during the year by the organization. 2029 Schedule M (Form 990-EZ) — IRS Schedule M (Form 990-EZ) is used by an organization that files Form 990 to report the types of noncash contributions received during the year by the organization. Note: For more information see the chart: IRS Form 990 and the form's instructions 2040 IGRP Publication 15, Guide for Charities and Nonprofits. 2041 Schedule D IRA An IRA is an individual retirement account, commonly referred to as an IRA. IRA is the term in this publication usually used to mean a Retirement Savings Plan. A Retirement Savings Plan is a retirement plan, plan, plan-in-plan, etc., designed to cover the retirement needs of employees and their families. These plans are commonly established and managed by a fiduciary, such as a trustee, and financed by other investors. These funds must be invested in assets that are not subject to Federal securities or Federal insurance laws. IRA is also known as an individual annuity, and IRA and annuity are frequently used interchangeably by the public. You may contribute to an IRA at any time, even if the plan has been established. An IRA that contains 10,000 or less at any time must be opened by April 15 to avoid tax. Any balance of 10,000 or more at that time is taxable. If you contribute to an IRA, you may not withdraw any funds from it after you make tax-free contributions. In order to contribute, you must first deduct the cost to you of the IRA contribution, and then you may contribute up to the annual limit for that year. Once that contribution has been made, you may deduct the remainder of the cost as a deduction on Form 1040. However, you cannot deduct contributions of 15,000 to an IRA during 2015. (See IRAs, later.) If you contribute more than the annual contribution limit on any year, or contribute after the annual contribution limit has been met, you may be subject to a penalty.
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