INDIVIDUAL INCOME TAXATION The Regular Income Tax for Individuals The income tax of individuals is determined through the following tax table: Year 2018 to Year 2022 Illustration 1 - Itemized deduction Mrs. Macipag, a self-employed taxpayer, had the following quarterly income deta't chapter 14 - Regular incorim I axduon: Individuals Withholding tax His quarterly and annual taxable income and tax due shall be computed on his -mulative year-to-date taxable income as follows: Illustration 2 - Optional standard deduction Let us assume the same data in the preceding problem, except that the taxpayer opted to use the optional standard deduction. The quarterly and annual taxable income and tax due shall be computed as follows: MIXED INCOMEEARNER The compensation income of mixed income earners will be subjected to the withholding tax on compensation by their employers. Mixed income earmed would report their business or professional income on a quarterly basis under Form 1701Q. The compensation income shall not be reported in the quartery return. It shall be included only in the annual consolidated return. Mixed incore taxpayers shall use BIR Form 1701. Illustration To facilitate our discussion, let us assume the same data in the previous illustratict except that Mrs. Macipag is also employed with the following income during the year: Quarterly tax Mrs. Macipag shall report her quarterly income from business or profession and p a the same quarterly income tax due as computed in the previous illustration: Annual income tox The taxable income of Mrs. Macipag for the year shall be computed as: Mrs. Macipag shall file BIR Form 1701 for her consolidated income. Her annual income tax still due shall be computed as: Please explain where did the values (especially P987,000) come from to arrive to the answer Income tax still due P231,850. Note only explain Mixed Income Earner Illustration. INDIVIDUAL INCOME TAXATION The Regular Income Tax for Individuals The income tax of individuals is determined through the following tax table: Year 2018 to Year 2022 Illustration 1 - Itemized deduction Mrs. Macipag, a self-employed taxpayer, had the following quarterly income deta't chapter 14 - Regular incorim I axduon: Individuals Withholding tax His quarterly and annual taxable income and tax due shall be computed on his -mulative year-to-date taxable income as follows: Illustration 2 - Optional standard deduction Let us assume the same data in the preceding problem, except that the taxpayer opted to use the optional standard deduction. The quarterly and annual taxable income and tax due shall be computed as follows: MIXED INCOMEEARNER The compensation income of mixed income earners will be subjected to the withholding tax on compensation by their employers. Mixed income earmed would report their business or professional income on a quarterly basis under Form 1701Q. The compensation income shall not be reported in the quartery return. It shall be included only in the annual consolidated return. Mixed incore taxpayers shall use BIR Form 1701. Illustration To facilitate our discussion, let us assume the same data in the previous illustratict except that Mrs. Macipag is also employed with the following income during the year: Quarterly tax Mrs. Macipag shall report her quarterly income from business or profession and p a the same quarterly income tax due as computed in the previous illustration: Annual income tox The taxable income of Mrs. Macipag for the year shall be computed as: Mrs. Macipag shall file BIR Form 1701 for her consolidated income. Her annual income tax still due shall be computed as: Please explain where did the values (especially P987,000) come from to arrive to the answer Income tax still due P231,850. Note only explain Mixed Income Earner Illustration