Filing a 2005 Tax Return by acu91249

VIEWS: 9 PAGES: 9

More Info
									                                Income Tax Liability Estimation Worksheets
                        For Married, Single, and Head of Household Farm Taxpayers




                                                                   Introduction
Cash-basis farm income taxpayers have flexibility in determining their taxable income in a given year. Because these taxpayers do not
recognize income until it is received, and expenses until they are paid, taxable income can be adjusted by controlling income and expenses
prior to the end of the tax year.

The following worksheets, for married individuals filing joint returns, and for single taxpayers, are intended to aid in the process of evaluating
taxable income prior to the end of the tax year, by permitting the taxpayer to seethe effect on income and self-employment tax liabilities
resulting from increases or decreases in taxable income on the taxpayer's books as of the date of the tax estimate.


                                                                    Instructions
Each Tax Liability Worksheet (Married or Single) will print out as two pages. Cells for data entry are the open (white) cells on the worksheet.
Colored cells are protected from user entry, to avoid inadvertant alteration or loss of underlying formulas and instructions.

The taxpayer's name and the date the tax liability estimate is being prepared should be entered in cells B3 and B4, respectively. If the taxpayer or
spouse is either age 65 or older, blind, or both, a "1" should be entered as applicable in cells D3, D4, E3, and E4. The total number of Exemptions
(personal and dependent) should be entered in cell C21.

Schedule F cash incomes and expenses through the date the estimate is being prepared should be entered in cells C9 and C10, respectively.
Schedule F cash income and expenses that will be received / incurred between the date of the tax liability estimate and the end of the tax year
should be entered in cells D9 and D10.

Any I.R.C. Sec. 179 expense election claimed (up to $105,000) should be entered in cell D13. The Sec. 179 expense election cannot be used to
create a business loss, considering all ordinary income from all businesses, including salaries and wages. Any 30% or 50% (either available for
assets placed in services after May 5, 2003) Additional First Year depreciation claimed on new assets with a tax life of less than 20 years should
be claimed in cell D14. Additional First Year depreciation is not allowed for Georgia income tax purposes. Regular depreciation should be
entered in cells D15 and D16. It is importantremember to compute regular depreciation for Georgia income tax purposes on any amount claimed
as AFY depreciation for Federal taxation. Any amortization expense should be entered in cell D16.

"Additional Schedule F Income" and "Additional or prepaid Schedule F Expenses" are purposely blocked from entry so that the user can
see an estimate of his or her taxable income and tax liabilities without any adjustments to Schedule F net income. The cells in columns C
through G can be used to evaluate the effect of various levels of additional Schedule F income, if the base scenario taxable income is low,
or the effect of various levels of additional Schedule F expense, if the base taxable income is high.

"Non-Schedule F farm income" is farm income which will be taxed at ordinary income rates and which is not subject to Self-Employment
Tax. Such income includes recapture of depreciation on the sale of depreciable farm assets, and the sales of breeding livestock which do not
the holding period requirement. This cell should also include losses on such transactions, and losses on the sale of farm assets that did
meet the holding period requirement. If the final number to be entered in the cell is a loss, it should be entered as a negative number.

" Long Term Capital Gains" are gains in excess of the original basis of the asset disposed of, provided the holding period for the asset was met.
For assets other than livestock, the holding period is one year. For cattle and horses, the holding period is 24 months. For all other livestock,
the holding period is 12 months. For all assets except livestock, a person inheriting an asset is automatically deemed to have met the holding
period requirement.
                                                       Instructions Continued
Tobacco Termination Program Payments: Gains realized payments to tobacco quota holders are long term capital gains,
provided the holding period was met. Losses are ordinary losses and should be included in "Non-Schedule F farm income"
as a negative number. Payments to tobacco producers are included in Schedule F Farm Income if the recipient is a material participant
in a farm business in the current tax year.

"Other Non-Farm Income" is for the entry of other ordinary income, such as wages and salaries, interest, dividends, rents, and royalties.
TTPP Producer Payments to retired farmers should also be included in this entry.

IRA Contributions" are for Regular IRA contributions. Contributions to a Roth IRA are not excludible from income. Regular IRA
contributions are limited by the amount of taxable earned income on the return, so the entry for each column must be made by the
spreadsheet user. The maximum contribution to a regular IRA for 2005 is $3,000 for taxpayers under age 50, and $3,500 for taxpayers age 50
and older. Full contributions can be made for both the taxpayer and a non-working spouse, provided there is at least as much earned income
reported on the return as there is claimed as an IRA contribution. "SEP / Other Retirement Contributions" is for other deductible retirement
plan contributions. Contributions to SEPs and other retirement plans are based on a percentage of business income, which up to the maximum
permitted percent, can be selected by the taxpayer. For this reason, the taxpayer must compute retirement plan contribution on a column by
column basis.

Entries are needed in the "Itemized Deductions" section of the worksheet if the taxpayer anticipates itemizing personal deductions
The formulas in the spreadsheets are written to use the greater of either the taxpayer's standard deduction, or expected itemized deductions
in computing taxable income.


                                                                  Disclaimer
The following spreadsheets are intended to be used as a tool to estimate taxable income for cash basis farm taxpayers. It is impossible in
in these spreadsheets to cover every possible income and self employment tax liability situation. The purpose of the spreadsheets is to give
cash basis farm taxpayers an illustration of the income and self-employment tax impact created by changing net Schedule F income through
through either the acceptance of additional income, or the payment of additional expaneses. These spreadsheets are for educational
purposes only, and are not in any way a form of income tax return preparation tool.

These spreadsheets provide only an estimate of regular income tax liability for farm taxpayers. No provision is made in these spreadsheets to
evaluate the effect on federal income tax liability created by the Domestic Activities Production Deduction, Farm Income Averaging,
or by the Alternative Minimum Tax.

                                                                    Prepared by
                                                     Keith D. Kightlinger, Extension Economist
                                                  Department of Agricultural and Applied Economics
                                                  Cooperative Extension, The University of Georgia

                                                                  kkight@uga.edu
                                                                   (229) 386-3512

                                                                  December 1, 2005
Estimate of 2005 Tax Liabilities
Married Filing Joint Return                                       Taxpayer     Spouse
Name                                                  Age > 64                            (Enter "1" in each
Date                                                     Blind                            applicable box)
                                                         Total           0            0

                                                       Year to   Remainder     Total for
                                                         Date       of Year        Year
          Schedule F Cash Income                                                       0
          Schedule F Cash Expense                                                      0
          Schedule F Net Cash Income                                Federal    Georgia
          before Depreciation and Changes                                 0            0
          Section 179 Expense Election                                                 0
          AFY Depreciation                                                             0 See Instruction Page
          Regular Depreciation
          Amortization                                                                0
          Expected Net Schedule F
          Income Before Adjustments                                      0            0

          Exemptions and Deductions                   Number     Fed. Value   Ga. Value
          Personal & Spouse Exemptions                     2           3200        2700
          Dependent Exemptions                             0           3200        3000
          Total Value of Exemptions                                    6400        5400
          Standard Deduction                                          10000        3000
          Schedule F Net Income
          before Adjustments                                0            0            0              0              0
          Additional Schedule F Income                      0
          Additional or Prepaid Schedule F Expenses         0
          Final Schedule F Net Income                       0            0            0              0              0
          Non-Schedule F Farm Income                                     0            0              0              0
          Net Long Term Capital Gains                                    0            0              0              0
          Non-Farm Income Subject to S/E Tax                             0            0              0              0
          Other Non-Farm Income                                          0            0              0              0
          Total Income                                      0            0            0              0              0

          1/2 Self Employment Tax                           0            0            0              0              0
          IRA Contributions
          SEP / Other Retirement Contributions
          100% Health Insurance Deduction                   0            0            0              0              0
          Other Adjustments to Income
          Adjusted Gross Income: Federal                    0            0           0               0              0
          Adjusted Gross Income: Georgia                    0            0           0               0              0
          Allowed Federal Exemptions                     6400         6400        6400            6400           6400
          Standard or Itemized Deduction                10000        10000       10000           10000          10000
          Federal Taxable Income                            0            0           0               0              0
          Income Subject to Regular Tax                     0            0           0               0              0
          Georgia Exemptions                             5400         5400        5400            5400           5400
          Ga. Standard or Itemized Deductions            3000         3000        3000            3000           3000
          Georgia Taxable Income                            0            0           0               0              0
          Net Self-Employment Income                        0            0           0               0              0
          Regular Federal Income Tax                        0            0           0               0              0
          Long Term Capital Gains Tax                       0            0           0               0              0
          Self Employment Tax                               0            0            0              0             0
          Georgia Income Tax                                0            0            0              0              0
          Total Tax Liability prior to
          Payments, Credits, AMT, or
          Income Averaging                                  0            0            0              0              0
Estimate of 2005 Tax Liabilities
Married Filing Joint Return
Name                                                0
Date      January 0, 1900

          Allowed Federal Exemptions                    6400    6400    6400    6400    6400

          Itemized Deductions
          Doctors and Medicine                                     0       0       0       0
          Health Insurance Premiums                        0
          0% of Health Insurance Premiums                  0       0       0       0       0
          Total Medical Expenses                           0       0       0       0       0
          7.5% of Adjusted Gross Income                    0       0       0       0       0
                        Allowed Medical Expenses           0       0       0       0       0
          Taxes                                            0       0       0       0       0
          Interest                                         0       0       0       0       0
          Charitable Contributions                         0       0       0       0       0
          Total Other Itemized Deductions                  0       0       0       0       0
          Total Itemized Deductions                        0       0       0       0       0
          3% Limitation                                    0       0       0       0       0
          80% Limitation                                   0       0       0       0       0
          Applicable Limitation                             0       0       0       0       0
          Allowed Itemized Deductions                       0       0       0       0       0



          Federal Taxable Income
          Income Subject to 10% Tax                         0       0       0       0       0
          Income Subject to 15% Tax                         0       0       0       0       0
          Income Subject to 25% Tax                         0       0       0       0       0
          Income Subject to 28% Tax                         0       0       0       0       0
          Income Subject to 33% Tax                         0       0       0       0       0
          Income Subject to 35% Tax                         0       0       0       0       0

          Georgia Taxable Income
          Income Subject to 1% Tax                          0       0       0       0       0
          Income Subject to 2% Tax                          0       0       0       0       0
          Income Subject to 3% Tax                          0       0       0       0       0
          Income Subject to 4% Tax                          0       0       0       0       0
          Income Subject to 5% Tax                          0       0       0       0       0
          Income Subject to 6% Tax                          0       0       0       0       0

          Federal Taxation of L. T. Capital Gains
          Unused Part of 10 and 15% Tax Brackets        59400   59400   59400   59400   59400
          L.T. Capital Gains Taxable at 5%                 0       0       0       0       0
          L.T. Capital Gains Taxable at 15%                0       0       0       0       0
Estimate of 2005 Tax Liabilities
Filing Single                                                     Taxpayer
Name                                                  Age > 64                (Enter "1" in each
Date                                                     Blind                applicable box)
                                                         Total           0

                                                       Year to   Remainder        Total for
                                                         Date       of Year           Year
          Schedule F Cash Income                                                          0
          Schedule F Cash Expense                                                         0
          Schedule F Net Cash Income                                Federal       Georgia
          before Depreciation and Changes                                 0               0
          Section 179 Expense Election                                                    0
          AFY Depreciation                                                                0 See Instruction Page
          Regular Depreciation
          Amortization                                                                    0
          Expected Net Schedule F Income
          Before Adjustments                                             0                0

          Exemptions and Deductions                   Number     Fed. Value      Ga. Value
          Personal Exemptions                              1           3200           2700
          Standard Deduction                                           5000           2300
          Schedule F Net Income
          before Adjustments                                0            0                0            0              0
          Additional Schedule F Income                      0
          Additional or Prepaid Schedule F Expenses         0
          Final Schedule F Net Income                       0            0                0            0              0
          Non-Schedule F Farm Income                                     0                0            0              0
          Net Long Term Capital Gains                                    0                0            0              0
          Non-Farm Income Subject to S/E Tax                             0                0            0              0
          Other Non-Farm Income                                          0                0            0              0
          Total Income                                      0            0                0            0              0

          1/2 Self Employment Tax                           0            0                0            0              0
          IRA Contributions
          SEP / Other Retirement Contributions
          100% Health Insurance Deduction                   0            0                0            0              0
          Other Adjustments to Income
          Adjusted Gross Income: Federal                    0            0               0            0               0
          Adjusted Gross Income: Georgia                    0            0               0            0               0
          Allowed Federal Exemptions                     3200         3200            3200         3200            3200
          Standard or Itemized Deduction                 5000         5000            5000         5000            5000
          Federal Taxable Income                            0            0               0            0               0
          Income Subject to Regular Tax                     0            0               0            0               0
          Georgia Exemptions                             2700         2700            2700         2700            2700
          Ga. Standard or Itemized Deductions            2300         2300            2300         2300            2300
          Georgia Taxable Income                            0            0               0            0               0
          Net Self-Employment Income                        0            0               0            0               0
          Regular Federal Income Tax                        0            0               0            0               0
          Long Term Capital Gains Tax                       0            0               0            0               0
          Self Employment Tax                               0            0               0            0              0
          Georgia Income Tax                                0            0                0            0              0
          Total Tax Liability prior to
          Payments, Credits, AMT, or
          Income Averaging                                  0            0                0            0              0
Estimate of 2005 Tax Liabilities
Filing Single
Name                                                0
Date      January 0, 1900

          Allowed Federal Exemptions                    3200    3200    3200    3200    3200

          Itemized Deductions
          Doctors and Medicine                                     0       0       0       0
          Health Insurance Premiums
          0% of Health Insurance Premiums                  0       0       0       0       0
          Total Medical Expenses                           0       0       0       0       0
          7.5% of Adjusted Gross Income                    0       0       0       0       0
                       Allowed Medical Expenses            0       0       0       0       0
          Taxes                                                    0       0       0       0
          Interest                                                 0       0       0       0
          Charitable Contributions                                 0       0       0       0
          Total Other Itemized Deductions                          0       0       0       0
          Total Itemized Deductions                        0       0       0       0       0
          3% Limitation                                    0       0       0       0       0
          80% Limitation                                   0       0       0       0       0
          Applicable Limitation                             0       0       0       0       0
          Allowed Itemized Deductions                       0       0       0       0       0



          Federal Taxable Income
          Income Subject to 10% Tax                         0       0       0       0       0
          Income Subject to 15% Tax                         0       0       0       0       0
          Income Subject to 25% Tax                         0       0       0       0       0
          Income Subject to 28% Tax                         0       0       0       0       0
          Income Subject to 33% Tax                         0       0       0       0       0
          Income Subject to 35% Tax                         0       0       0       0       0

          Georgia Taxable Income
          Income Subject to 1% Tax                          0       0       0       0       0
          Income Subject to 2% Tax                          0       0       0       0       0
          Income Subject to 3% Tax                          0       0       0       0       0
          Income Subject to 4% Tax                          0       0       0       0       0
          Income Subject to 5% Tax                          0       0       0       0       0
          Income Subject to 6% Tax                          0       0       0       0       0

          Federal Taxation of L. T. Capital Gains
          Unused Part of 10 and 15% Tax Brackets        29700   29700   29700   29700   29700
          L.T. Capital Gains Taxable at 5%                 0       0       0       0       0
          L.T. Capital Gains Taxable at 15%                0       0       0       0       0
Estimate of 2005 Tax Liabilities
Head of Household                                                 Taxpayer
Name                                                  Age > 64                (Enter "1" in each
Date                                                     Blind                applicable box)
                                                         Total           0

                                                       Year to   Remainder        Total for
                                                         Date       of Year          Year
          Schedule F Cash Income                                                          0
          Schedule F Cash Expense                                                         0
          Schedule F Net Cash Income                                Federal       Georgia
          before Depreciation and Changes                                0                0
          Section 179 Expense Election                                                    0
          AFY Depreciation                                                                0 See Instructions Page
          Regular Depreciation
          Amortization                                                                   0
          Expected Net Schedule F Income
          Before Adjustments                                              0              0
          Exemptions and Deductions                   Number     Fed. Value      Ga. Value
          Personal Exemption                               1           3200           2700
          Dependent Exemptions                                         3200           3000
          Total Value of Exemptions                                    3200           2700
          Standard Deduction                                           7300           3000
          Schedule F Net Income
          before Adjustments                                0            0               0            0             0
          Additional Schedule F Income                      0
          Additional or Prepaid Schedule F Expenses         0
          Final Schedule F Net Income                       0            0               0            0             0
          Non-Schedule F Farm Income                                     0               0            0             0
          Net Long Term Capital Gains                                    0               0            0             0
          Non-Farm Income Subject to S/E Tax                             0               0            0             0
          Other Non-Farm Income                                          0               0            0             0
          Total Income                                      0            0               0            0             0

          1/2 Self Employment Tax                           0            0               0            0             0
          IRA Contributions
          SEP / Other Retirement Contributions
          100% Health Insurance Deduction                   0            0               0            0             0
          Other Adjustments to Income
          Adjusted Gross Income: Federal                    0            0               0            0            0
          Adjusted Gross Income: Georgia                    0            0               0            0            0
          Allowed Federal Exemptions                     3200         3200            3200         3200         3200
          Standard or Itemized Deduction                 7300         7300            7300         7300         7300
          Federal Taxable Income                            0            0               0            0            0
          Income Subject to Regular Tax                     0            0               0            0            0
          Georgia Exemptions                                0            0               0            0            0
          Ga. Standard or Itemized Deductions            3000         3000            3000         3000         3000
          Georgia Taxable Income                            0            0               0            0            0
          Net Self-Employment Income                        0            0               0            0            0
          Regular Federal Income Tax                        0            0               0            0            0
          Long Term Capital Gains Tax                       0            0               0            0            0
          Self Employment Tax                               0            0               0           0              0
          Georgia Income Tax                                0            0               0            0             0
          Total Tax Liability prior to
          Payments, Credits, AMT, or
          Income Averaging                                  0            0               0            0             0
Estimate of 2005 Tax Liabilities
Head of Household
Name                                                0
Date     January 0, 1900

          Allowed Federal Exemptions                    3200    3200    3200    3200    3200

          Itemized Deductions
          Doctors and Medicine                                     0       0       0       0
          Health Insurance Premiums
          0% of Health Insurance Premiums                  0       0       0       0       0
          Total Medical Expenses                           0       0       0       0       0
          7.5% of Adjusted Gross Income                    0       0       0       0       0
                           Allowed Medical Expenses        0       0       0       0       0
          Taxes                                                    0       0       0       0
          Interest                                                 0       0       0       0
          Charitable Contributions                                 0       0       0       0
          Total Other Itemized Deductions                          0       0       0       0
          Total Itemized Deductions                        0       0       0       0       0
          3% Limitation                                    0       0       0       0       0
          80% Limitation                                   0       0       0       0       0
          Applicable Limitation                             0       0       0       0       0
          Allowed Itemized Deductions                       0       0       0       0       0



          Federal Taxable Income
          Income Subject to 10% Tax                         0       0       0       0       0
          Income Subject to 15% Tax                         0       0       0       0       0
          Income Subject to 25% Tax                         0       0       0       0       0
          Income Subject to 28% Tax                         0       0       0       0       0
          Income Subject to 33% Tax                         0       0       0       0       0
          Income Subject to 35% Tax                         0       0       0       0       0

          Georgia Taxable Income
          Income Subject to 1% Tax                          0       0       0       0       0
          Income Subject to 2% Tax                          0       0       0       0       0
          Income Subject to 3% Tax                          0       0       0       0       0
          Income Subject to 4% Tax                          0       0       0       0       0
          Income Subject to 5% Tax                          0       0       0       0       0
          Income Subject to 6% Tax                          0       0       0       0       0

          Federal Taxation of L. T. Capital Gains
          Unused Part of 10 and 15% Tax Brackets        39800   39800   39800   39800   39800
          L.T. Capital Gains Taxable at 5%                 0       0       0       0       0
          L.T. Capital Gains Taxable at 15%                0       0       0       0       0

								
To top