Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Identify three sources of income, and provide an example of the evidence of the amount, e.g. the bank statement will have interest received. How would
- Identify three sources of income, and provide an example of the evidence of the amount, e.g. the bank statement will have interest received.
- How would you verify that a client earned $50,000 from their employer?
- Give some examples of rebates, tax offsets and allowable deductions. Would you rather a $100 rebate or a $100 allowable deduction?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Sources of Income and Evidence a Employment Income Example Evidence Pay Stub or Income Statement from the employer showing gross earnings deductions and net pay b Rental Income Example Evidence Rental Agreement or Lease Agreement showing the monthly rent amount received from tenants c Investment Income Example Evidence Brokerage Statement or Form 1099DIV showing dividend and interest income from investments Verifying 50000 Earned from an Employer To verify that a client earned 50000 from their employer you can request the following documents Pay stubs Multiple pay stubs covering the entire income year which should add up to at least 50000 W2 form The clients W2 form for the tax year which summarizes their annual earnings from the employer Bank statements If the salary is directly deposited into their bank account bank statements should show regular deposits aligning with the expected income Examples of Rebates Tax Offsets and Allowable Deductions a ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
