Requirements

Apply the steps prescribed in the tax law to determine tax liability by addressing the following:

Determine the amount of Gross Income and Adjusted Gross Income and show all of your work If any income amount shauld be excluded, provide an explanation as to why.

Differentiate between the standard and itemized deductions by prowiding an explanation of each. Next, compute the amount of Itemized Deductions and show all of your work Compare this amount to the Standard Deduction pravided in the table abive. Determine the appropriate application of this concept by deciding on the amount to be utilized $-$ Itemized Deductions or Standard Deduction. Support your decision.

Determine Taxable Income utilizing information from the first two requirements and show all ol your wark

Based on the Taxable lacome computed in the previous requirement, use the above Tax Tabie to determine the amount of Income Tax. Explain how you found the number in the Table.

Determine the amount of Tax Refund or Tax Owed and show all of your work.

Discuss throe hey income tax planning strategies designed to neduce income tax liabality that you could utilise for next year, It is assumed thal you do not currently practict any type of incorse tax planning so you can "think outside of the box" when answering this question.