TAX RETURN SUMMARY
Tax returns provide information that is used by the taxation authorities to calculate the income tax and another form of taxes. Individuals are taxed on a worldwide income earnings basis considering employment or services tax and other forms of taxes. Usually, the total incomes received are tax-deductible unless those that are of exemption legally. Tax balances that are due are carried forward and will be deducted in the future while overpayments are refunded. Income received from employers, interest realized from bank accounts, and any other form of income is included in the tax return. In this case, Martin and Kenzie received income from their employers is taxed and another income that receives, i.e., the amount he received $1,250 and $25,000.
The amounts that the employer spends on employee training are not included in the tax return. The reward of free vacation for the whole family to Aruba should not be part of the tax return, as it is a motivation from the employer. Additional benefits provided by an employer are not taxable, therefore not supposed to be part of the income tax return. Martin’s earnings received from businesses in which he is a shareholder are subject to tax. The revenue authorities do not earn income tax income from kids that are still receiving provision from their parents. In contrast, the children’s provision expenses are deducted from their income before taxation. Earnings realized from a company where the taxpayer is stakeholder are subject to taxation; this implies that Kenzie’s 40% ownership stake in hardscapes is deductible in his tax return.
Incomes arising from renting own property are taxed, and thus martins and Kenzie’s second home rent incomes are included in their tax return. Rental income is taxable, but the taxing authority allows deductions of some specific expense from the tax return. In this case, Marty’s and Kenzie’s homes incurred some expense, and therefore they will be allowed to deduct the cost from their tax return. Taxation of the senior people in the society is done above a certain amount while the expenses to cater to them are tax-deductible. In this case, Kenzie’s father income is below$13,600 and thus will not be part of tax return while the expenses martyrs and Kenzie’s are catering for will be they will be allowed to deduct them from the tax return
Benefits arising from insurance policy being a beneficiary are subject to tax, and the insurance company should hold a percentage of the amount to cater for tax deductions. It’s appropriate for liberty mutual to keep the amount for federal taxes. Health expenses are taxed, and some are non-taxable, depending on the type of costs. In this case, the amount that Marty’s family spent on medical expenses will not be part of the tax return. Incomes from other sources, i.e., loan repayment, investments in bonds, dividends received from companies one is a stakeholder, and overpayment are taxable. Therefore the earnings derived from such investment by Marty will part of the tax return.
Donations /contributions to organizations that qualify as charitable institutions are subject to the exemption of taxes. Taxpayers are given an allowance to deduct a similar amount of the donation from their gross income. For instance, Marty’s gift of shares and cash will be allowed for deduction. Inheritances and gifts are considered as non-taxable income unless in a case where the previous owner did not file tax returns. In this case, Kenzie’s inheritance from his uncle and the gifts both her and Marty’s received will not be part of the tax return.