Types and benefits and intricacies of rules

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Discussion questions for federal income tax:

Types and Benefits

John and Jill, who are married, reported 2012 itemized deductions of $7,500 and $500 respectively. John suggests that they file their Federal income tax returns separately-he will itemize his deductions from AGI, and she will claim the standard deduction. Explain why John suggested the taxes be prepared in such a way. What should the couple do? What is the best option? What are some tax planning considerations for John and Jill in future years?

Intricacies of Rules

Tax rules are often very precise. For instance, a taxpayer must ordinarily provide "over 50%" of another person's support in order to claim a dependency exemption. Why is the threshold "over 50%" as opposed to "50% or more"? Explain in detail.

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Reference no: EM1359063

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