Wages & Withholding
What IRS form reports wages, tips, and federal income tax withheld?
What is Form W-2?
What form reports nonemployee compensation?
What is Form 1099-NEC?
What form reports interest income?
What is Form 1099-INT?
What form reports unemployment compensation?
What is Form 1099-G?
What does the acronym V.I.D.E.O. stand for in preparer notes?
What is Verify, Identify, Document, Expenses, Other Notes?
Which box on the W-2 shows federal income tax withheld?
What is Box 2?
What tax form reports business income and expenses for sole proprietors?
What is Schedule C?
What form reports dividend income?
What is Form 1099-DIV?
What form reports gambling winnings?
What is Form W-2G?
What’s one question you’d ask a self-employed taxpayer to verify their business activity?
What is “What type of services or products do you provide?”
True or False: Tips over $20 in a month must be reported to the employer.
True
Which tax applies to self-employed individuals for Social Security and Medicare?
What is Self-Employment Tax?
What is the difference between ordinary dividends and qualified dividends?
What is qualified dividends are taxed at lower capital gains rates, ordinary at regular rates?
True or False: CashApp and Venmo business transactions can count as taxable income.
True
A client says they “did hair for cash” but has no receipts. What’s your best due diligence move?
What is ask clarifying questions and document estimated income and method of determination?
What two forms do you use to verify a taxpayer’s employment identity when onboarding them for a refund product?
What are a government-issued photo ID and their Social Security card?
What percentage of a taxpayer’s self-employment tax is deductible as an adjustment to income?
What is 50%?
If a taxpayer earned $8 in bank interest from their savings account, where does it go on the tax return?
What is Schedule B (if applicable) or directly on Form 1040, line for interest income?
A client received $2,000 for jury duty. Where does that go on the return?
What is Other Income on Schedule 1, Line 8j?
Why is documenting how you verified income important?
What is it protects the preparer during an audit and proves due diligence compliance?
If a client has two W-2s from different jobs, what’s the first step you take when entering income?
What is enter each W-2 separately to ensure proper withholding and employer match?
Name three common deductible business expenses for a self-employed taxpayer.
What are supplies, advertising, and business mileage?
I will take others as long as it is a category on the schedule c
If a client received a 1099-DIV showing both qualified and nonqualified dividends, how do you enter it?
What is enter both separately to ensure proper tax rate calculation?
The IRS requires taxpayers to report all income from any source unless it’s specifically exempt. What’s the term for this principle?
What is The All-Income Rule?
What’s one way to educate a client on why you must report all income—even CashApp?
What is explain that unreported income can cause IRS penalties and affect loan approvals?