INDIVIDUAL TAXPAYERS TAX FILING EXERCISES

Exercise 1:

Name : Arturo Makatawtaw Tadtaran

Address : San Jose St. District III, Burauen, Leyte
RDO Code : 088
TIN No. : 190-123-456-0000
Zip Code : 6516
Date of Birth : November 08, 1975

The following are the information about the income earned by the taxpayer
in 2019:

Gross Compensation Income: P 1,300,000

13th month pay and other benefits P 150,000
Mandatory Contributions P 200,000
Withholding tax per BIR Form 2316 P 120,000

The following information are the other benefits received by the taxpayer
working in a government agency in Tacloban City.

Monetized unused vacation leave credits 11 days

Monetized unused sick leave credits 12 days
Medical assistance P 9,000
Rice Subsidy (P 1,800 per month) P 21,600
Clothing Allowance P 6,500
Laundry Allowance P 5,000
Loyalty or service award P 25,000
Christmas and anniversary gift P 15,000
Meals for graveyard shift P 5,000

Required:
Prepare the annual income tax return of Mr. Arturo for the taxable year
2019.
 Exercise 2:

Name : Panfilo Napa Talindas

Address : San Jose St. District III, Burauen, Leyte
RDO Code : 088
TIN No. : 190-321-654-0000
Zip Code : 6516
Date of Birth : October 29, 1969

Panfilo, a non-vat registered taxpayer had the following information

relating to his business operations for the taxable year 2019:

1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Total

Sales P 500,000 P 700,000 P 800,000 P 900,000 P 2,900,000
Sales Disc. P 10,000 P 15,000 P 25,000 P 30,000 P 80,000
Sales Returns P 30,000 P 35,000 P 45,000 P 50,000 P 160,000
Cost of Sales P 200,000 P 250,000 P 350,000 P 400,000 P 1,200,000
Other Ded.:
Bad Debts P 5,000 P 15,000 P 20,000 P 25,000 P 65,000
Depreciation P 20,000 P 20,000 P 20,000 P 20,000 P 80,000
EAR P 3,000 P 8,000 P 10,000 P 9,500 P 30,500
Interest Exp. P 10,000 P 10,000 P 10,000 P 10,000 P 40,000
Rent Expense P 30,000 P 30,000 P 30,000 P 30,000 P 120,000
Losses P 0 P 0 P 7,000 P 13,000 P 20,000
Salaries P 50,000 P 50,000 P 50,000 P 50,000 P 200,000
Taxes & Lic. P 20,000 P 0 P 0 P 0 P 20,000
Security Serv P 25,000 P 25,000 P 25,000 P 25,000 P 100,000
Other Income P 20,000 P 20,000 P 20,000 P 20,000 P 80,000

Other information:
1. Per quarter, Panfilo earned P 5,000 interest income from his deposit
in the bank.
2. In December 20, 2019, in consideration of the upcoming Christmas
party of a charitable institution, he donated P 100,000 to such
institution as an additional funding to help achieve its objectives.
Out of the P 100,000 donation, P 20,000 was used for administrative
purposes.

Requirements:
1. Prepare the first quarter and annual income tax return if the
taxpayer opted to be taxed at graduated income tax rates:
1.1. he opted to elect itemized deductions
1.2. he opted to elect optional standard deduction

2. Prepare the first quarter and annual income tax return if the
taxpayer opted to be taxed at 8% tax rate.
 Exercise 3:

Name : Rudy Du Terte

Address : San Jose St. District III, Burauen, Leyte
RDO Code : 088
TIN No. : 290-721-654-0000
Zip Code : 6516
Date of Birth : June 16, 1948

Rudy, a rank and file employee is working in a private company and has a
business. The following information relates to the total income earned by
Rudy during the taxable year:

Annual Compensation Income P 1,500,000

13th month pay and other benefits P 200,000
Total Income P 1,700,000

Sales P 2,800,000
Cost of sales P 1,200,000
Depreciation Expense P 50,000
Rent Expense P 70,000
Salaries and Wages P 80,000
Non-operating income P 100,000

Requirements:
1. Prepare the annual income tax return if Rudy opted to be taxed at
the graduated income tax rate

2. Prepare the annual income tax return if Rudy opted to be taxed at

the 8% income tax rate.