Fundamentals of Taxation

Answer:

Income tax is the tax paid by individuals, household, and business entities to the government on the earnings that they have. The rules and regulations are supervised by IRS which is a government body. Form 1040 is the expanded and biggest tax form followed by 1040A. These forms have several sections which are related to earning, deduction, credits, and expenses.
Dependent is the one who depends on the taxpayers for his expenses and survival and is relative of the taxpayer. Dependency exemption is the amount that the taxpayer is allowed to deduct from his gross income for each of his qualifying dependent.
Qualifying dependent could be a relative, spouse, child, etc. Qualifying dependent is the one who has passed several test depending upon the relationship with the taxpayer, and taxpayer is allowed to take exemptions on these dependents.
The five tests which are necessary to qualify as child of the taxpayer are as follows:
• Relationship test: The child should have certain specific relationship to qualify like descendant, stepchild, foster child, sibling, etc.• Age test: The child should be less than 19 years of age, or less than 24 if he is full-time student. There is no age limit in case of totally and permanently disabled child.• Residency test: The child should live with the taxpayer for at least half year except for the reasons of studies, military service, vacation, or illness.
• Support test: The taxpayer should provide money for more than 50 percent support item including food, clothing, accommodation, healthcare, education, etc.• Special test: This is applicable in case of divorced or legally separated couple and all other test should lead to qualification. This tells the scenario when a non-custodial parent could show kid as dependent in their returns.

Answer:

Income tax:
Income tax is the part of the income that the earner pays in return to the government of the country. It is a compulsory obligation of every earner. It is calculated by the income tax department of the country as per pre-determined slabs.
Mr. G and Mrs. D can file an income tax return using the status of married filing jointly. According to section 7703(a)(1) and 601(a) of IRC, a couple can file one joint tax return even if they married on the last date of the year. Joint filing combines all income, deductions, and of both spouses. They can file an income tax return using the status of married filing jointly even if only one of them is earning the whole income.A married couple doesn't need to file an income tax return using the status of married filing jointly, they can file two separate returns but under unusual circumstances.

Answer:

Income tax is the tax paid by individuals, household and business entities to the government on the earnings that they have. The rules and regulations are supervised by IRS which is a government body. Form 1040 is the expanded and biggest tax form followed by 1040A. These forms have several sections which are related to earning, deduction, credits and expenses.
Tax table is a tabular representation which shows the tax liability of the taxpayer depending upon his/her taxable income when income is less than $100,000. Tax rate schedule is a tabular representation of the tax rates for different slab of income.Taxpayer has to either use tax rate schedule or tax table depending upon the income. If taxable income is less than $100,000 then tax table is used, and if taxable income is $100,000 or more than $100,000 then tax rate schedule is used.