Consider the differences between the standard deductions vs. itemized deductions given the filing status.Discuss whether the tax treatment for each taxpayer is in line with the Adam Smith’s taxation cannons.

Accounting-Tax-Computing Taxable Income

Prepare a 3-4-page Word document answering the following case:

Rank the following three single taxpayers in order of magnitude of taxable income (from lowest to highest) and explain your results. (Note: Use standard deduction amounts provide under the Tax Cut Job Acts (TCJA) enacted in November 2017).

Alice: Gross Income = $80,000

Deductions for AGI = $15,000

Itemized deductions = 0

Brian: Gross Income = $80,000

Deductions for AGI = $5,000

Itemized deductions = $12,000

Craig: Gross Income = $80,000

Deductions for AGI = $0

Itemized deductions = $15,000

In your paper, you should consider the differences between the standard deductions vs. itemized deductions given the filing status.

Additionally:

Compare and contrast deductions for AGI and deductions from AGI (itemized deductions).

Discuss whether the tax treatment for each taxpayer is in line with the Adam Smith’s taxation cannons.

Consider the differences between the standard deductions vs. itemized deductions given the filing status.Discuss whether the tax treatment for each taxpayer is in line with the Adam Smith’s taxation cannons.
Scroll to top