ACC 307 Exam 2 Ch.5-8 Questions And
Answers With Verified Solutions Already
Passed Latest Updated 2025
Itemized deductions - ANSWER✔✔Also known as "deductions from AGI", these
personal expenditures are allowable for such items as medical expenses, state and
local taxes, charitable contributions, interest on a personal residence, and casualty
and theft losses
The tax payer may choose to deduct the higher if ID or SD amount
Federal Taxes (Rate Charts 2018) - ANSWER✔✔Single
Taxable Income Tax Rate
$0 - $9,525 10% of taxable income
$9,526 - $38,700 $952.50 plus 12% of the amount over $9,525
$38,701 - $82,500 $4,453.50 plus 22% of the amount over $38,700
$82,501 - $157,500 $14,089.50 plus 24% of the amount over $82,500
$157,501 - $200,000 $32,089.50 plus 32% of the amount over $157,500
$200,001 - $500,000 $45,689.50 plus 35% of the amount over $200,000
$500,001 or more $150,689.50 plus 37% of the amount over $500,000
Married Filing Jointly or Qualifying Widow(er)
Taxable Income Tax Rate
$0 - $19,050 10% of taxable income
$19,051 - $77,400 $1,905 plus 12% of the amount over $19,050
$77,401 - $165,000 $8,907 plus 22% of the amount over $77,400
,$165,001 - $315,000. $28,179 plus 24% of the amount over $165,000
$315,001 - $400,000. $64,179 plus 32% of the amount over $315,000
$400,001 - $600,000. $91,379 plus 35% of the amount over $400,000
$600,001 or more $161,379 plus 37% of the amount over $600,000
Married Filing Separately
Taxable Income Tax Rate
$0 - $9,525. 10% of taxable income
$9,526 - $38,700 $952.50 plus 12% of the amount over $9,525
$38,701 - $82,500 $4,453.50 plus 22% of the amount over $38,700
$82,501 - $157,500 $14,089.50 plus 24% of the amount over $82,500
$157,501 - $200,000. $32,089.50 plus 32% of the amount over $157,500
$200,001 - $300,000 $45,689.50 plus 35% of the amount over $200,000
$300,001 or more $80,689.50 plus 37% of the amount over $300,000
Head of Household
Taxable Income Tax Rate
$0 - $13,600 10% of taxable income
$13,601 - $51,800 $1,360 plus 12% of the amount over $13,600
$51,801 - $82,500 $5,944 plus 22% of the amount over $51,800
$82,501 - $157,500 $12,698 plus 24% of the amount over $82,500
$157,501 - $200,000. $30,698 plus 32% of the amount over $157,500
$200,001 - $500,000 $44,298 plus 35% of the amount over $200,000
, $500,001 or more $149,29
Adjusted Gross Income (AGI) - ANSWER✔✔a measure of income calculated
from your gross income and used to determine how much of your income is
taxable. It is the starting point for calculating a filer's tax bill in the United States
and, among other things, is the basis for many deductions and credits.
To calculate:
Gross Income(Salary,dividends, interest income, net rental income(expenses))
Minus: Deductions(Business deduction, alimony, health insurance premiums, loss
on sale of stock)
"For" vs "From"
"For":"Above the line deductions", can be claimed even if client does not itemize,
can determine size of certain itemized deduction
"From":Greater of Standard Deduction or Itemized Deduction or Qualified
Business Deduction
Passive Activity - ANSWER✔✔A business activity in which the taxpayer does not
materially participate.
Subject to PA loss limitations (PAL).
Losses must be suspended and carried over
business bad debt - ANSWER✔✔A tax deduction allowed for obligations obtained
in connection with a trade or business that have become either partially or
