Income Tax and Deductions Essay Example for Free

Income evaluate and Deductions EssayTax avoidance is legal in most states and every tax payer will present his returns in a way which reduces tax burden the most. Thus a taxpayer will opt for either exemplification synthetic thinking or itemized deduction whichever will enable him shoulder less tax burden. For standard deduction the deduction from taxable aggregate is a standard t every last(predicate)y. For example for a single citizen the standard amount is $5,350. For married couples filling jointly the standard deduction will be double for the single ($10,700) nevertheless for a married couples filing separately each will be allowed a standard amount like for a single person it is ,350. A qualifying widow(er) with dependant child will be treated the same way a married couple filing jointly. For the head of household whether a woman or a man the deduction will be $7,850. Itemized deduction is enjoyed by adjusting your outlay behavior to spend more on the items which enj oy tax privileges. Similarly one can take up dependant from a qualifying child or relative which has tax benefits such as the chela Tax Credit, the Child and Dependant Care Credit as well as the Earned Income Credit. These all work to the advantage of the tax payer.The standard deduction for a dependant is the higher of $850 and the dependants earned income addition $300 provided it does not exceed the standard deduction of the filing taxpayer. However in some instances the interference gives some taxpayers unfair advantage over others. For instance a parent can claim a qualifying child but dont claim the child as his/hers. Thus other parent can claim dependant deduction from the same child provided the AGI of the person higher than the highest AGI (Adjusted everlasting(a) Income) of the two parents. This can be misused by the taxpayers who have higher AGI than other parent then enjoying unfair tax advantage.