Income
For federal tax purposes, these are treated as property and gains produce taxable income. They include, but are not limited to Stablecoins and Non-fungible tokens (NFTs).
Digital Assets/Cryptocurrency
This tax form should be used to report deductions from a small business as a sole proprietor.
Schedule C, Profit or Loss From Business
A service member or spouse would file this tax form to claim the foreign tax credit if he or she paid or accrued certain foreign taxes to a foreign country or U.S. possession.
Form 1116, Foreign Tax Credit
Nanny Taxes are reported on this tax form if a household employee cares for a dependent under age 13 or for a spouse or dependent who isn't capable of self-care.
Schedule H, Household Employment Taxes
This law allows military spouses to declare the same state of legal residency as their spouse.
The Military Spouses Residency Relief Act - MSRRA
One of the following is not included in a service member's gross income: training duty, basic allowance for housing (BAH), back wages, re-enlistment pay, or hazardous duty pay.
Basic allowance for housing (BAH)
Armed Forces reservists are qualified employees for this miscellaneous itemized deduction on Form 2106. He or she must travel more than 100 miles away from home in connection with the performance of services.
Employee business expenses
If a service member qualifies for one or more of these tax benefits, he or she may have to reduce the amount of qualifying expenses by part or all of his or her VA (Veterans Affairs) payments.
Education credit
This tax refers to tax on a child's investment income.
If a child's interest, dividends, and other unearned income total more than $2,300, it may be subject to a specific tax on the unearned income of certain children.
Kiddie Tax
If a military spouse qualifies for tax exemption from Virginia income tax under the Military Spouses Residency Relief Act, he or she should request a refund of the taxes withheld from wages using this form.
Virginia (VA) Form 763-S
This is a distribution to an individual of all or part of the individual's balance in a cafeteria plan or health flexible spending arrangement. The portion reported by DFAS as wages on Form W-2, is included in gross income and is taxable.
Qualified reservist distribution (QRD)
This is a strategy used by high earners for converting a traditional IRA to a Roth IRA. Using this strategy, you can contribute to an IRA and roll it over to a Roth IRA or convert an entire IRA to a Roth.
The backdoor Roth IRA
U.S. Armed Forces personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of this credit
Earned Income Credit
During this event, the following occurs.
• If the tax being forgiven hasn't yet been paid, it may not have to be paid.
• If the tax being forgiven has been paid, the payment may be refunded.
Tax forgiveness
In 2023, this state made an important change to tax law for National Guard members. Military pay while in active service of the state or on state active duty is no longer taxed.
Oregon
A service member may be able to exclude this type of pay for service in any area the President of the United States designates by Executive order, as an area in which the U.S. Armed Forces are engaging or have engaged in combat.
Combat zone pay
This form is used to figure a moving expense deduction for members of the Armed Forces on active duty who, due to a military order, move because of a permanent change of station.
Form 3903, Moving Expenses
Qualified adoption expenses allowable in the current year may include expenses paid in a former year or years. To claim the adoption credit or exclusion, complete this tax form.
Form 8839, Qualified Adoption Expenses
This tax exclusion does not apply to the wages and salaries of military and civilian employees of the U.S. Government, who work at U.S. Armed Forces exchanges in foreign countries.
Foreign earned income exclusion
At present, this number of states levy no state income tax at all.
7 states
Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming
If a service member participates in this retirement plan and receive a distribution from his or her account, the distribution is generally included in taxable income unless the contributions included tax-exempt combat zone pay.
Uniformed Services Traditional Thrift Savings Plan (TSP)
This is an annual tax deduction that allows a rental property owner to recover the cost or other basis over time. It stops when the cost is recovered or the asset is retired from service.
Depreciation
If a child is treated as the qualifying child of the noncustodial parent, only the noncustodial parent can claim the child as a dependent and claim the child tax credit, additional child tax credit, or credit for other dependents for the child. This credit can only be claimed by the custodial parent.
Credit for child and dependent care expenses
If you don't meet the Eligibility Test, you may still qualify for a partial exclusion of this tax, if the main reason for the home sale was a change in workplace location, a health issue, or an unforeseeable event.
Capital gains tax
Residency is where one chooses to live temporarily or where there is an employment contract. However, this term is used for a place more permanent and where a person intends to return even if currently residing elsewhere.
Domicile