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March 22, 2020 at 7:03 pm
Hello and I have a question to ex. 13:
If ANI = Net income – Gross Personal Contrib. – Gross Gift
Then, why dont we do this:
Net Income 53.000 – Gross Gift 2.000 = TO ARRIVE TO Net Income 51.000 ?
I assume that because the Total Income is less than 100.000, no ANI is needed.
But at the same time the formula says: ANI = Net income – Gross Personal Contrib. – Gross Gift
June 10, 2020 at 9:16 am
If I am right..
Yes, as the total income is already less than 100,000, we are assured of a full personal allowance of 12,500.
As u said ANI = 53,000 – 2,000 = 51,000 (51,000 is Adjusted Net Income and not Net Income)
ANI calculation is only required to determine the personal allowance, it is not a part of income tax computation.
We dont need ANI here, as we already know that we get full personal allowance.
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