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  • Income Tax Formulas

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    Xiaj Au
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    The document contains summaries of three types of income: purely compensation income, purely business income from merchandising, and purely business income from manufacturing. It lists revenue, expenses, deductions, exemptions, and tax calculations for each type of income.

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    Income Tax Formulas

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    The document contains summaries of three types of income: purely compensation income, purely business income from merchandising, and purely business income from manufacturing. It lists revenue, expenses, deductions, exemptions, and tax calculations for each type of income.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    31 views2 pages

    Income Tax Formulas

    Uploaded by

    Xiaj Au
    The document contains summaries of three types of income: purely compensation income, purely business income from merchandising, and purely business income from manufacturing. It lists revenue, expenses, deductions, exemptions, and tax calculations for each type of income.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 2

    PURELY COMPENSATION INCOME

    Gross Compensation Income xxx


    Basic Personal Exemption xx
    Additional Exemptions xx
    Health/Life Insurance Premiums xx (xxx)
    Net Compensation Income xxx

    PURELY BUSINESS INCOME (merchandising)

    Gross Sales/Revenue xx
    Less: Sales Discounts and Returns (xx)
    Net Sales xx
    Less: Cost of Sales (COST)
    Beg. Inventory xx
    Net Purchases xx
    Freight xx
    Insurance xx
    Ending Inventory (xx) xxx
    Gross Income xxx
    Itemized Deductions or OSD xx
    Basic Personal xx
    Additional Exemptions xx xxx
    Taxable Income xxx
    Tax Rate (table) %
    Tax Due xxx
    Less: Tax Credits (xx)
    TAX PAYABLE xxx

    PURELY BUSINESS INCOME (manufacturing)

    Gross Sales/Revenue xx
    Less: Sales Discounts and Returns (xx)
    Net Sales xx
    Less: Cost of Sales (COST)
    Direct Materials xx
    Direct Labor xx
    Overhead xx
    Gross Income xxx
    Itemized Deductions or OSD xx
    Basic Personal xx
    Additional Exemptions xx xxx
    Taxable Income xxx
    Tax Rate (table) %
    Tax Due xxx
    Less: Tax Credits (xx)
    TAX PAYABLE xxx
    GROSS INCOME

    Gross Sales
    Less:
    Sales Discounts

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