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TPC 1 4 - 0 2 ( Static ) [ LO 1 4 - 3 ] Assume that the tax law allows individuals to claim
TPC StaticLO
Assume that the tax law allows individuals to claim an itemized deduction for the cost of music lessons for the taxpayer or any member of his family. Instead of this deduction, individuals may claim the first $ of the cost as a nonrefundable tax credit no carryforward or carryback of any excess credit In each of the following situations, advise the taxpayer as to whether she should take the deduction or credit. In each situation the taxpayer is single. Assume the taxable year is Use Individual Tax Rate Schedules and Standard Deduction Table.
Compute Ms Omars additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $ AGI. Before consideration of the $ cost of her music lessons, she has $ itemized deductions.
Individual Tax Rate Schedules
Married Filing Jointly and Surviving Spouse
If taxable income is The tax is
Not over $ of taxable income
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ $ of excess over $
Married Filing Separately
If taxable income is The tax is
Not over $ of taxable income
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ $ of excess over $
Head of Household
If taxable income is The tax is
Not over $ of taxable income
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ $ of excess over $
Single
If taxable income is The tax is
Not over $ of taxable income
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ but not over $ $ of excess over $
Over $ $ of excess over $
Married filing jointly and surviving spouses $
Married filing separately
Head of household
Single
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