TAX RETURN
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 another form of taxes. Usually, the total incomes received are tax-deductible unless those that are of exemption legally. Tax balances that re due are carried forward and will be deducted in the future while overpayments are re refunded
Received incomes from employers and any other form incomes are included in the tax return and interest realized from bank accounts too. 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 employees pay for the employer to go for 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 is motivation from the employee. Additional benefits provided by an employee are not taxable, therefore not supposed to be part of the income tax return. Martins any earnings received from businesses he is a shareholder they are subject to tax.
The revenue authorities do not tax incomes for kids that are still receiving provision from their parents. In contrast, the children’s provision expenses are allowed to deduct the amount 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 is 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 expenses deductions from the tax return. In this case, Marty’s and Kenzie’s home incurred some expense, and therefore they will be allowed to deduct the total amount 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$13600 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 then the insurance company should hold a percentage of the amount that will cater for tax deductions. It’s appropriate for liberty mutual to keep the amount for federal taxes.
Health expenses are taxed, and some are nontaxable 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 items that 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 he will be allowed to deduct the same before the taxation deadline.
Inheritances and gifts are considered as nontaxable income unless cases where the previous owner did not file tax returns. In this case, Kenzie’s inheritance from his uncle and the gift both her and Marty’s received will not be part of the tax return.