When it comes to penalties on early withdrawal of savings and alimony paid, there are specific rules and regulations that taxpayers need to follow to avoid being penalized by the IRS. Let’s dive deeper into these two topics and see how they impact taxpayers’ tax liabilities.
Posts in the Bob Steele CPA Article category:
IRA Deduction Questionnaire 4105 Income Tax Preparation 2022 – 2023
The income tax years of 2020 to 2023 have brought about several changes and updates to the IRA deduction questionnaire. It is important to have a solid understanding of these changes, especially when it comes to tax preparation and wealth preservation. In this blog, we will be looking at a worksheet found on the form 1040 instructions on the IRS website to help us calculate the actual deduction.
Certain Business Expenses of Reservists, Performing Artists, and 4030 Income Tax Preparation 2022
Certain groups of individuals such as reservists, performing artists, and fee basis government officials are still able to claim certain business expenses as adjustments to income on Schedule 1, line 10. To claim these deductions, Form 2106 needs to be attached to the tax return.
Unemployment Compensation 3340 Income Tax Preparation 2022 – 2023
Unemployment compensation is taxable income, which means that you will have to report it on your federal income tax return. However, there are certain deductions and credits that can help you reduce your tax liability.
Certain Business Expenses of Reservists, Performing Artists, Example 4032 Income Tax Preparation
Income tax is a necessary part of being a citizen in any country, but it can also be confusing and overwhelming. In this blog, we will be discussing income tax from 2020 to 2023. Specifically, we will focus on certain business expenses of reservists performing artists and fee-based government officials, as well as tax software example problems to help with wealth preservation and tax preparation.
Other Income Part 2 Example 3356 Income Tax Preparation 2022 – 2023
Income tax season can be overwhelming, especially if you’re not familiar with tax forms and regulations. In this blog, we’ll walk you through an example of how to prepare your tax return using Lacerte tax software for the 2022-2023 tax year.
Progressive Tax Income Tax Preparation 2023
We have a calculation of 4,540 plus 22% of the excess over 44,725. So once again, we have this layered system where we’re not taxing the entire amount at one flat rate. We’re taxing the first portion at a lower rate and then the excess at a higher rate. And finally, if you make over 95,375 but not over 150,000, we have a calculation of 14,652 plus 26% of the excess over 95,375. So as you can see, the tax rate increases as the income or tax base increases, which makes it a progressive tax system.
Taxable Refunds, Credits, or Offsets of State and Local Income Taxes 3280 Income Tax Preparation
The good news is that in most cases, if you received a refund from state or local income taxes in 2022, you will not need to include it in your taxable income. This is because you already paid taxes on that income in the prior year, and the refund is simply a return of those overpaid taxes. So, in general, tax refunds are not considered taxable income.
Categories of Taxation Part 1 Income Tax Preparation 2022-2023
A regressive tax system is one where the tax rate decreases as income increases, which means that lower-income earners end up paying a higher percentage of their income in taxes compared to higher-income earners. An example of a regressive tax is a sales tax or usage tax, where everyone pays the same tax rate regardless of their income level.
Create a Tax Formulate Worksheet Using Excel Part 3 1510 Income Tax Preparation 2022 – 2023
In this blog post, we’ll be continuing our discussion on tax preparation and wealth preservation. Specifically, we’ll be focusing on creating a tax formula worksheet using Excel to help us double-check the data input that we’re putting into the tax system and to help us visualize how the tax forms are populated. We’ll also be discussing some of the sub-schedules that make up Form 1040, including adjustments to income and the various income line items.