Sales Tax in Tax Return

There are three locations where you may enter sales tax on your personal income tax: Depreciable Basis. For example, you purchased a car for business use, the sales tax is then included in the car cost to be depreciated over the recovery period Direct write-off. For example, you bought an office supply that was charged …

Form 1041 – Introduction

IRS Form 1041 is an income tax return for estates and trusts. If you are the executor of an estate, you may be required to file Form 1041. Form 1041 must be filed for the deceased in addition to any personal income return you need to file on his or her behalf. Note, Form 1041 …

Form 8962 – Premium Tax Credit

Using MAGI to determine Federal Poverty Line from 0% - 400%. The higher the percentage, the higher applicable figure will be. MAGI multiplies by the applicable figure equals the contribution amount. This is the amount that the taxpayer should be paying for health insurance of SLCSP. The contribution amount is then compared with actual SLCSP. …

Wash Sale Rule

The wash-sale rule is an Internal Revenue Service (IRS) regulation that prohibits a taxpayer from claiming a loss on the sale or trade of a security in a wash sale. The rule defines a wash sale as one that occurs when an individual sells or trades a security at a loss, and within 30 days …

Section 1256 Contract

Section 1256 contracts prevent tax-motivated straddles that would: Defer income Convert short-term capital gains into long-term capital gains To do so, Section 1256 requires that these contracts be traded on a market-to-market exchange. You might hold Section 1256 contracts at the end of the year. If so, they’re treated as if they were sold at …

Repayments

The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. In most cases, you deduct the repayment on the same form or schedule on which you previously reported it as income. Repayment of $3,000 or less. Deduct it in the year …

1099-G

Box 1 is the State Unemployment Income Box 2 is the Refund amount (state and local tax withheld subtract state and local tax?)  

Qualified Retirement Savings Contributions Credit

Form 8880 have earned income under AGI limit (S:30k) only up to $2,000 qualified contribution

SSI – Supplemental Security Income

Eligibility - Anyone is 1) age 65 or 2) blind or 3) disabled and $2,000 (S) or $3,000 (MFJ) of assets

Education Benefits

American Opportunity Credit the first 4 years of postsecondary education 4 tax years of credit available a program leading to a degree or credential at least half-time no felony drug conviction payment for the academic period include tax year and the first 3 months of the following year 100% of the first $2,000, and 25% …