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Are taxes a large cash outflow for a corporation?

Increasing globalization of business makes it necessary to understand financial reporting by firms that follow other accounting standards. If your tax bill is $200 and your taxable income is $2,000, then your average tax rate is _____ percent. True or false: Taxes can be a large cash outflow for a corporation. ...

What tax deductions can I take above the line?

There are some common tax deductions you can take “above the line” that reduce your Adjusted Gross Income on your tax return and others will be considered “below the line”. Wondering what might apply to you? Check out our list of common and valuable tax breaks. What is a tax deduction? ...

How are above-the-line tax deductions calculated?

Above-the-line deductions: Above-the-line tax deductions, or adjustments to income, are calculated by subtracting them from your gross income to arrive at your adjusted gross income (AGI). Reducing AGI can impact other items on your return, such as taxable Social Security and eligibility for credits. ...

What if an employee has a pre-tax deduction?

If an employee has a pre-tax deduction, subtract the amount from their wages before you figure out some or all of their taxes. This lowers their taxable income. Examples of pre-tax deductions include health insurance premiums, some retirement plans, and life insurance premiums. ...