Accounting-Taxation

Accounting-Taxation

ACCOUNTING-TAXATION

Student`sname

Note:

  • Please filling in the personal details part at the top of page one and at the bottom of the second page of the form.

  • The amount of gross income used is just mere value since income statements was not provided.

Reference

Form1040

https://www.google.com/url?sa=t&amprct=j&ampq=&ampesrc=s&ampsource=web&ampcd=1&ampcad=rja&ampuact=8&ampved=0CB0QFjAAahUKEwj0l-XQrfvHAhXRFNsKHXJSAiE&ampurl=http%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-pdf%2Fi1040gi.pdf&ampusg=AFQjCNG3VnyM8BaRDhMEmRdzUUCIa-2Wjw&ampsig2=wld-sBq7N6yDQKBhpaw4IQ


Accounting-Taxation

Accounting-Taxation

ACCOUNTING-TAXATION

Student`sname

Note:

  • Please filling in the personal details part at the top of page one and at the bottom of the second page of the form.

  • The amount of gross income used is just mere value since income statements was not provided.

Reference

Form1040

https://www.google.com/url?sa=t&amprct=j&ampq=&ampesrc=s&ampsource=web&ampcd=1&ampcad=rja&ampuact=8&ampved=0CB0QFjAAahUKEwj0l-XQrfvHAhXRFNsKHXJSAiE&ampurl=http%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-pdf%2Fi1040gi.pdf&ampusg=AFQjCNG3VnyM8BaRDhMEmRdzUUCIa-2Wjw&ampsig2=wld-sBq7N6yDQKBhpaw4IQ


Accounting-Taxation

Accounting-Taxation

ACCOUNTING-TAXATION 3

ThePA and federal gross income differ in very significant ways. Someitems on the PA are not on the Federal income. They are taxable onthe federal income tax (IT), but untaxable in the PA. Others are noton the federal list of taxable items but are in the PA list. Theitems on PA gross income and not on the federal GI are: salaries,wages, tips receipts by employees, gratuities, commissions, bonuses,vacation pay, termination pay, early retirement incentives,honoraria, proceeds from stock ownership, witness fees, jury fees,cash allowances for utilities, and rent, and national serviceeducation awards.

Thereare other items taxable Federal GI, but not in the PA GI. Theyinclude: alimony, child support, social security, active duty payreceived outside Pennsylvania, public assistance, rail-roadretirement benefits, inheritance, unemployment compensation, GIbenefits such as tuition and living expenses, benefits from theoccupational Disease Act, rented property provided by an employer atreducing cost, proceeds and settlements from life insurance, premiumspaid by organizations or employers for term life insurance,professional services provided by the employer, deferrals tocompensation plans classified as non-deferral (Seghers, 1943).

Unlike,the federal GI, there are those items in the PA GI that are underdifferent tax regimes based on the prevailing circumstances. Forinstance sick or leave may or may not be subject to tax. Thecircumstances that can lead to taxation include those that underregular wages and the employer must indicate whether or not they arecompensation. If the sick payments not classified as regular wagesthey are not taxable under PA GI. Furthermore, compensation fromthird party insurers is also untaxable under PA.

Reference

Seghers,P. D. (1943). Federal Tax Accounting. Journalof Accountancy (pre-1986),75(000006),553.


Accounting-Taxation

Accounting-Taxation

ACCOUNTING-TAXATION

Student`sname

Note:

  • Please filling in the personal details part at the top of page one and at the bottom of the second page of the form.

  • The amount of gross income used is just mere value since income statements was not provided.

Reference

Form1040

https://www.google.com/url?sa=t&amprct=j&ampq=&ampesrc=s&ampsource=web&ampcd=1&ampcad=rja&ampuact=8&ampved=0CB0QFjAAahUKEwj0l-XQrfvHAhXRFNsKHXJSAiE&ampurl=http%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-pdf%2Fi1040gi.pdf&ampusg=AFQjCNG3VnyM8BaRDhMEmRdzUUCIa-2Wjw&ampsig2=wld-sBq7N6yDQKBhpaw4IQ