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This filing status is generally available to an unmarried taxpayer who paid more than half the cost of keeping up a home for a qualifying person.
What is Head of Household?
This federal return is generally filed by an ?S corporation to report its income, deductions, credits, and shareholder information.
What is Form 1120-S?
This form tells an employee how much they earned in wages and how much federal income tax was withheld.
What is Form W-2?
A taxpayer receives a $10,000 gift from their parent. This is generally the person who is responsible for any federal gift tax reporting.
What is the donor?
Unlike a deduction, this directly reduces a taxpayer's tax liability dollar-for-dollar.
What is a tax credit?
This form is used to report interest, dividends, capital gains, and other investment income to the IRS.
What is Schedule B?
Before an S corporation shareholder can deduct a pass-through loss, this tax concept generally needs to be considered.
What is basis?
This form is generally issued to report nonemployee compensation paid to an independent contractor.
What is Form 1099-NEC?
A taxpayer receives a $5,000 inheritance from their deceased parent. This is how the inheritance is generally treated as income to the recipient for federal income tax purposes.
What is generally not taxable income?
This deduction allows eligible taxpayers to deduct certain qualified business income from a pass-through business, subject to numerous limitations.
What is the Section 199A/QBI deduction?
This provision allows an eligible taxpayer to exclude up to $250,000 of gain, or $500,000 for certain married couples, from the sale of a principal residence.
What is the Section 121 exclusion?
An S corporation shareholder who provides substantial services to the corporation generally must receive this before taking non-wage distributions.
What is reasonable compensation?
A taxpayer sells an investment property and needs to report the sale, including the property's selling price, adjusted basis, and resulting gain or loss. This is the form used to report the transaction.
What is Form 4797?
A taxpayer sells stock at a loss and buys substantially identical stock within 30 days before or after the sale. This rule may prevent the taxpayer from immediately deducting the loss.
What is the wash-sale rule?
This education credit can provide up to $2,500 per eligible student for qualifying expenses.
What is the American Opportunity Tax Credit?
This deduction may allow a self-employed taxpayer to deduct qualifying health insurance premiums paid for themselves, their spouse, and dependents, subject to limitations.
What is the self-employed health insurance deduction?
Even when an S corporation shareholder has sufficient basis, these additional limitations can prevent a loss from being currently deductible.
What are the at-risk and passive activity limitations?
Employers generally use this quarterly form to report federal income tax withheld and Social Security and Medicare taxes.
What is Form 941?
A taxpayer converts a traditional IRA to a Roth IRA. This is generally the portion of the conversion that becomes taxable income, assuming the taxpayer has no after-tax basis.
What is the amount converted?
A taxpayer pays $5,000 in medical expenses during the year. Only the portion of qualifying medical expenses that exceeds this percentage of adjusted gross income is generally deductible as an itemized deduction.
What is 7.5% of AGI?
A married couple filing jointly has $40,000 of qualified dividends and $100,000 of ordinary taxable income before the dividends are included. The tax treatment of the qualified dividends is generally determined using these tax rates rather than the ordinary income tax rates.
What are the preferential long-term capital gain rates of 0%, 15%, or 20%?
An S corporation has a loss for the year, but its shareholder has zero basis in the corporation. The shareholder wants to deduct the loss on their personal tax return. This is the first limitation that prevents the deduction.
What is the basis limitation?
These two forms are commonly used when reporting the sale of stocks or other capital assets and calculating the resulting gain or loss.
What are Form 8949 and Schedule D?
A taxpayer receives a $100,000 inheritance from a parent and later sells the inherited property for $110,000. This tax rule generally determines the taxpayer’s starting basis in the inherited property.
What is the step-up in basis to fair market value at the date of death?
A taxpayer donates appreciated stock that they have owned for more than one year directly to a qualifying charity. Assuming the requirements are met, the taxpayer can generally deduct this amount rather than simply deducting what they originally paid for the stock.
What is the fair market value of the stock?