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.
Please provide references.