ACC 330 Module Two Income Assignment Cases
.docx
keyboard_arrow_up
School
Southern New Hampshire University *
*We aren’t endorsed by this school
Course
330
Subject
Accounting
Date
Apr 3, 2024
Type
docx
Pages
4
Uploaded by ChiefBarracudaPerson994 on coursehero.com
ACC 330 Module Two Income Assignment Template
Select three cases from the Module Two Income Assignment List. Research all three cases using the Tax Research Guide. Document your specific findings briefly and specifically as shown in the example.
Note: The Income Assignment List and the Tax Research Guide are located in the Supporting Materials section of the Module Two Income Assignment Guidelines and Rubric.
Criteria
Example
Case #1
Case #2
Case #3
Case Selected
Taxpayer D received royalties from authoring a textbook for a science course taught at the local
community college. Caleb received a prize totaling
$400 from the local civic center without any action on their part and without requirement to provide any services as a condition of receiving the prize.
Retired Army veteran, Korey, received grant funding in the amount of $10,000 for education, training, and subsistence allowance and $3,000 for his home to be designed for wheelchair living.
These funds were paid to Korey by the Department of Veteran Affairs (VA).
Justin received $12,000 in alimony payments for a divorce
agreement settled in 2021.
Summary Taxation of Royalties Taxation of Prizes and Awards
Taxation of Veteran Benefits
Taxation of Alimony Payments
Authoritative Primary Resource
IRC Section 61(a)(6) - Gross
income defined.
https://
uscode.house.gov/
view.xhtml?
req=granuleid:USC-prelim-
title26-
section61&num=0&edition
=prelim
IRC Section 74(a)(2)- Prices and Awards. 26 USC 74: Prizes and awards (house.gov)
IRS Publication 525- Taxable and Non-taxable Income, Military, Veterans’ Benefits pg. 16
2023 Publication 525 (irs.gov)
IRS Publication 525- Taxable and Non-Taxable Income, Alimony, Special Note. Pg. 32
2023 Publication 525 (irs.gov)
Secondary Resource
IRS Publication 525 – Taxable and Nontaxable IRS Publication 525 – Taxable and Nontaxable Income
IRS Publication 970- Tax Benefits for Education, Topic no. 452, Alimony and separate maintenance- IRS
Criteria
Example
Case #1
Case #2
Case #3
Income p. 17
https://www.irs.gov/
pub/irs-pdf/p525.pdf
p. 36
2023 Publication 525 (irs.gov)
Chapter 1. Pg. 8, Veterans’ Benefits
2023 Publication 970 (irs.gov)
(Tax treatment of alimony and separate maintenance)
Topic no. 452, Alimony and separate maintenance | Internal Revenue Service (irs.gov)
Supplemental Resource(s)
What is Taxable and Nontaxable Income? IRS.gov. March 14, 2022.
https://www.irs.gov/
businesses/small-
businesses-self-
employed/what-is-
taxable-and-nontaxable-
income#:~:text=Royalties
%20from%20copyrights
%2C%20patents%2C
%20and,)%2C
%20Supplemental
%20Income%20and
%20Loss
.
"Royalty Income: Everything You Need to Know” (2020)
https://
www.upcounsel.com/
royalty-income
About Form 1099-MISC, Miscellaneous Income 2021 Instructions for Forms 1099-
MISC and 1099-NEC (irs.gov)
Are Gifts, Prize Winnings and Non-Cash Bonuses Taxable?
Are Gifts, Prize Winnings and Non-Cash Bonuses Taxable? |
GOBankingRates
Information for Veterans- IRS
Information for Veterans | Internal Revenue Service (irs.gov)
How Is Alimony Taxed in a Divorce? How Is Alimony Taxed in a Divorce? | Brotman Law (sambrotman.com)
Opinion (Taxable or Nontaxable)
Taxable
Taxable
Non-Taxable
Non-Taxable
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
Section 12.2 Assessment
QUICK CHECK
Calculate Given the informa-
tion above, use Form 1040EZ in
Figure 12.4 on pages 394 and 395 and the
corresponding tax table in Figure 12.5 on
page 397 to determine whether Shirley will
owe the government money or will obtain
a refund. How much money will she owe,
1. Who must file a federal income tax return?
2. What are the three basic tax forms discussed
in this section?
3. What documents do you need to begin to
prepare your tax return?
THINK CRITICALLY
or how much will her refund be?
4. Briefly describe situations in which it
would be advantageous to use Form 1040A
instead of Form 1040EZ. When would you
use Form 1040EZ?
SOLVE MONEY PROBLEMS
6. Planning for Tax Time Poor Fred.
Tax time is drawing near, and he does not
know how to begin to prepare his income
tax return. He has piles of forms and other
paperwork, but he just cannot figure out
what to do with them. Fred needs help,
USE MATH SKILLS
5. A Taxing Question Last year, Shirley,
a single…
arrow_forward
Question content area top
Part 1
Determine how much the following individual will save in taxes with the specified tax credits or deductions.
Rosa is in the
28%
tax bracket and
claims the standard deduction.
How much will her tax bill be reduced if she makes a
$500
contribution to charity?
arrow_forward
Back
....... covers exemptions resulting from the status of the taxpayer and
exemptions based on the nature of income.
OA. Section 10
OB. Section 8
OC. Section 1
OD. Section 11
Previous page
Type here to search
道
a
arrow_forward
Activity 5Answer the following questions below using the graduated tax table. Write your answer on the space provided after every questions.a. How much is the tax due on a taxable income of P150,000?Answer:b. How much is the tax due on a taxable income of P290,000?Answer:c. Ms. Carol earns compensation income of P3,230,000 during a taxable year. How much is the tax due of Ms. Carol? Answer:d. Mrs. Emily married earns compensation income of P460,000 during 2019. How much 1s the tax due of Mrs. Emily? Answer: Week 5 ACTIVITIES 5 29 Fundamentals of Accountancy, Business and Management 2e. The payslip of Mr. Budoy shows the following information:Basic salary P348,000SSS contribution 6,976PhilHealth contribution 4,500Pag-IBIG contribution 1,210How much is the tax due to Mr. Budoy?Answer:
arrow_forward
PSb 3-4 Calculate Federal Income Tax Withholding Using the Percentage Method (pre-2020 Form W-4) For each employee listed. use the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4 to the Federal Tax Tables in Appendix A of your textbook. Note: For simplicity. all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
1. Juan Hoffman (single; 2 federal withholding allowances) earned weekly gross pay of $445. Federal income tax withholding=$
arrow_forward
PSc 3-5 Calculate Federal Income Tax Withholding Using Two Methods (pre-2020 Form W-4)
For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020
Form W-4. Refer to the Federal Tax Tables in Appendix A of your textbook.
NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
Publication 15-T (2020)
1: Michael Daugherty (married; 5 federal withholding allowances) earned weekly gross pay of $855. For each period, he makes a 403(b) retirement plan contribution of 12%
of gross pay.
Using wage-bracket method: Federal income tax withholding = $
Using percentage method: Federal income tax withholding = $
2: Carol Harrison (single; 0 federal withholding allowance) earned daily gross pay of $250. For each period, she makes a 401(k) contribution of 10% of gross pay.
Using wage-bracket…
arrow_forward
Exercise 5-4A (Static)
Under which circumstances could the percentage method be used to determine federal income tax withholding amounts? (You may
select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and
double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be
automatically graded as incorrect.)
@
2
W
? When the employee's taxable income exceeds the maximum amount on the appropriate wage-bracket table
? When computational accuracy is critical
? When using a computerized accounting system to compute payroll deductions
? When using a manual accounting system for a small number of low-pay employees
F2
#
3
JUL
7
E
80
F3
$
4
a
F4
R
.
%
5
U
8
DII
F8
ZAO
1
(
DD
9
F9
)
0
0
W
F10
S D F G H J K L
P
X
F11
>
arrow_forward
PSb 3-7 Calculate Federal Income Tax Withholding Using the Percentage Method (2020 Form W-4)
For each employee listed, use the percentage method to calculate federal income tax withholding for an employee who has submitted a 2020 Form W-4. Refer to Appendix A, 2020
Federal Tax Tables in your textbook.
Publication 15-T (2020)
1: Julia Jacobsen files as single on her tax return and earned weekly gross pay of 500. For each pay period she makes a 401(k) contribution of 2% of gross pay. Julia
checked box 2c on Form W-4, entered $40 on line 4c of the form, and did not enter any information in step 3 of the form.
Federal income tax withholding = |
2: Alejandro Wright files as single on his tax return and earned weekly gross pay of 1300. He does not make any retirement plan contributions. Alejandro entered 500 in
step 3 of the form and did not enter any information in steps 2 & 4 of the form.
Federal income tax withholding = $
Tentative Federal Income Tax Withholding = $
3: Beatrice Nen files…
arrow_forward
Question 3: Which of the following is taxable for Social Security tax?
Answer:
А.
O Contributions to a 403(b) plan
В.
O Contributions to a flexible spending account
С.
O Contributions to a dependent care flexible spending account
D.
O Contributions to a cafeteria plan
arrow_forward
SSS Problem 2–1
(Individual Income Tax Instalments)
In January 2021, you are asked to provide tax advice to Ms. Leslie Garond. She has provided
you with the following information about her combined federal and provincial income taxes
payable and the income taxes withheld by her employer for the 2019 and 2020 taxation
years:
Year
Taxes Payable
Taxes Withheld
2019
$22,000
18,000
$9,500
9,700
2020
For 2021, she estimates that her combined federal and provincial income taxes payable will be
$14,000 and that her employer will withhold a total of $9,850 in income taxes.
She has asked you whether it will be necessary for her to pay instalments in 2021 and, if so,
what the minimum amounts that should be paid are and when they are due.
Required: Advise Ms. Garond as to whether or not she is required to make instalment
payments for 2021. If instalments are required, calculate the alternative amounts that could
be paid under each alternative. Indicate which alternative would be best and the dates…
arrow_forward
Problem 2A
Optional Standard Deduction
B. Had Ms. Aubrey signified her intention to be taxed at the 8% income tax rate, find
from her work as a tour guide, cost of goods sold of P800,000, and operating expenses
2018, she recorded gross sales in the amount of P1,750,000, gross receipts of P300,000
opotional Standard Deduction
A. If Ms. Camilla opted to avail of the OSD, what will be her income tax due for 2018?
Ms. Camilla is the owner of a travel stuff shop and is also an in-demand tour guide. In
of P350,000.
Ms Camilla opted to avail of the OSD, what will be her income tax due for 2018?
dc Camilla signified in her 1st Quarter Income Tax Return her intention to be taxed
at the 8% income tax rate. Compute for her 2018 income tax liability.
Problem 2B
Optional Standard Deduction
Ms. Aubrey is a proprietor of a musical instruments store. She also teaches piano
lessons on the side. Her records for 2018 show the following:
Gross Sales from Musical Instruments Store
Gross Receipts as Piano…
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Related Questions
- Section 12.2 Assessment QUICK CHECK Calculate Given the informa- tion above, use Form 1040EZ in Figure 12.4 on pages 394 and 395 and the corresponding tax table in Figure 12.5 on page 397 to determine whether Shirley will owe the government money or will obtain a refund. How much money will she owe, 1. Who must file a federal income tax return? 2. What are the three basic tax forms discussed in this section? 3. What documents do you need to begin to prepare your tax return? THINK CRITICALLY or how much will her refund be? 4. Briefly describe situations in which it would be advantageous to use Form 1040A instead of Form 1040EZ. When would you use Form 1040EZ? SOLVE MONEY PROBLEMS 6. Planning for Tax Time Poor Fred. Tax time is drawing near, and he does not know how to begin to prepare his income tax return. He has piles of forms and other paperwork, but he just cannot figure out what to do with them. Fred needs help, USE MATH SKILLS 5. A Taxing Question Last year, Shirley, a single…arrow_forwardQuestion content area top Part 1 Determine how much the following individual will save in taxes with the specified tax credits or deductions. Rosa is in the 28% tax bracket and claims the standard deduction. How much will her tax bill be reduced if she makes a $500 contribution to charity?arrow_forwardBack ....... covers exemptions resulting from the status of the taxpayer and exemptions based on the nature of income. OA. Section 10 OB. Section 8 OC. Section 1 OD. Section 11 Previous page Type here to search 道 aarrow_forward
- Activity 5Answer the following questions below using the graduated tax table. Write your answer on the space provided after every questions.a. How much is the tax due on a taxable income of P150,000?Answer:b. How much is the tax due on a taxable income of P290,000?Answer:c. Ms. Carol earns compensation income of P3,230,000 during a taxable year. How much is the tax due of Ms. Carol? Answer:d. Mrs. Emily married earns compensation income of P460,000 during 2019. How much 1s the tax due of Mrs. Emily? Answer: Week 5 ACTIVITIES 5 29 Fundamentals of Accountancy, Business and Management 2e. The payslip of Mr. Budoy shows the following information:Basic salary P348,000SSS contribution 6,976PhilHealth contribution 4,500Pag-IBIG contribution 1,210How much is the tax due to Mr. Budoy?Answer:arrow_forwardPSb 3-4 Calculate Federal Income Tax Withholding Using the Percentage Method (pre-2020 Form W-4) For each employee listed. use the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4 to the Federal Tax Tables in Appendix A of your textbook. Note: For simplicity. all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1. Juan Hoffman (single; 2 federal withholding allowances) earned weekly gross pay of $445. Federal income tax withholding=$arrow_forwardPSc 3-5 Calculate Federal Income Tax Withholding Using Two Methods (pre-2020 Form W-4) For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. Refer to the Federal Tax Tables in Appendix A of your textbook. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. Publication 15-T (2020) 1: Michael Daugherty (married; 5 federal withholding allowances) earned weekly gross pay of $855. For each period, he makes a 403(b) retirement plan contribution of 12% of gross pay. Using wage-bracket method: Federal income tax withholding = $ Using percentage method: Federal income tax withholding = $ 2: Carol Harrison (single; 0 federal withholding allowance) earned daily gross pay of $250. For each period, she makes a 401(k) contribution of 10% of gross pay. Using wage-bracket…arrow_forward
- Exercise 5-4A (Static) Under which circumstances could the percentage method be used to determine federal income tax withholding amounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) @ 2 W ? When the employee's taxable income exceeds the maximum amount on the appropriate wage-bracket table ? When computational accuracy is critical ? When using a computerized accounting system to compute payroll deductions ? When using a manual accounting system for a small number of low-pay employees F2 # 3 JUL 7 E 80 F3 $ 4 a F4 R . % 5 U 8 DII F8 ZAO 1 ( DD 9 F9 ) 0 0 W F10 S D F G H J K L P X F11 >arrow_forwardPSb 3-7 Calculate Federal Income Tax Withholding Using the Percentage Method (2020 Form W-4) For each employee listed, use the percentage method to calculate federal income tax withholding for an employee who has submitted a 2020 Form W-4. Refer to Appendix A, 2020 Federal Tax Tables in your textbook. Publication 15-T (2020) 1: Julia Jacobsen files as single on her tax return and earned weekly gross pay of 500. For each pay period she makes a 401(k) contribution of 2% of gross pay. Julia checked box 2c on Form W-4, entered $40 on line 4c of the form, and did not enter any information in step 3 of the form. Federal income tax withholding = | 2: Alejandro Wright files as single on his tax return and earned weekly gross pay of 1300. He does not make any retirement plan contributions. Alejandro entered 500 in step 3 of the form and did not enter any information in steps 2 & 4 of the form. Federal income tax withholding = $ Tentative Federal Income Tax Withholding = $ 3: Beatrice Nen files…arrow_forwardQuestion 3: Which of the following is taxable for Social Security tax? Answer: А. O Contributions to a 403(b) plan В. O Contributions to a flexible spending account С. O Contributions to a dependent care flexible spending account D. O Contributions to a cafeteria planarrow_forward
- SSS Problem 2–1 (Individual Income Tax Instalments) In January 2021, you are asked to provide tax advice to Ms. Leslie Garond. She has provided you with the following information about her combined federal and provincial income taxes payable and the income taxes withheld by her employer for the 2019 and 2020 taxation years: Year Taxes Payable Taxes Withheld 2019 $22,000 18,000 $9,500 9,700 2020 For 2021, she estimates that her combined federal and provincial income taxes payable will be $14,000 and that her employer will withhold a total of $9,850 in income taxes. She has asked you whether it will be necessary for her to pay instalments in 2021 and, if so, what the minimum amounts that should be paid are and when they are due. Required: Advise Ms. Garond as to whether or not she is required to make instalment payments for 2021. If instalments are required, calculate the alternative amounts that could be paid under each alternative. Indicate which alternative would be best and the dates…arrow_forwardProblem 2A Optional Standard Deduction B. Had Ms. Aubrey signified her intention to be taxed at the 8% income tax rate, find from her work as a tour guide, cost of goods sold of P800,000, and operating expenses 2018, she recorded gross sales in the amount of P1,750,000, gross receipts of P300,000 opotional Standard Deduction A. If Ms. Camilla opted to avail of the OSD, what will be her income tax due for 2018? Ms. Camilla is the owner of a travel stuff shop and is also an in-demand tour guide. In of P350,000. Ms Camilla opted to avail of the OSD, what will be her income tax due for 2018? dc Camilla signified in her 1st Quarter Income Tax Return her intention to be taxed at the 8% income tax rate. Compute for her 2018 income tax liability. Problem 2B Optional Standard Deduction Ms. Aubrey is a proprietor of a musical instruments store. She also teaches piano lessons on the side. Her records for 2018 show the following: Gross Sales from Musical Instruments Store Gross Receipts as Piano…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you