33

Income is considered to be part of the tax year in which you receive the paycheck. Thus, even though you earned it in 2019, it'll be on your 2020 W-2. This is fair, because you'll have a similar situation at the end of 2020. IOW, the "extra" 2019 income on your 2020 W2 will be offset by the 2020 income that will be on your 2021 W2.


13

In many regions in the United States the state/local governments have a role in setting the rates for their jurisdictions. Frequently they limit the amount of profit the utility can make. Periodically this leads to the situation where the utility has excess profits. The government/rate commission directs the utility to either cut their rates or refund the ...


11

Yes, you need to include income from your freelance work on your tax return. In the eyes of the IRS, this is self-employment income from your sole-proprietorship business. The reason you don't see it mentioned in the 1040EZ instructions is that you can't use the 1040EZ form if you have self-employment income. You'll need to use the full 1040 form. Your ...


7

On your tax return's Schedule C, Line B, you need to enter the Principal Business or Professional Activity Code that corresponds to your business's activities. There is a list of these 6-digit codes at the end of the Schedule C instructions. (HTML version here, or you can look at the last two pages of the PDF version.) The directions at the top of this ...


6

Self-employment tax is the same as Social Security and Medicare withholdings on W2 income (commonly called FICA or payroll taxes), with W2 income employers pay half and you pay half. For those who are their own employers, they bundled the full amount of Social Security and Medicare together as self-employment tax when SECA was passed years after FICA was ...


6

The IRS is not actively enforcing the health care mandate this year, so don't worry about it. If you had health care, it is not actionable anyway.


6

You're over-thinking this. Assuming you're an employee, you use whatever amount is shown on your W2 form. If you're an independent contractor, whatever's shown on your 1099s, likewise if it's income from stocks &c.


5

It doesn't matter whether you enter "0" or "-0-". The instructions usually say "enter -0-". However, this is as much for making the instructions more legible as for anything on the actual form. The IRS scanners will be able to interpret either "0" or "-0-" as zero. In addition, you can also leave 0-value lines blank. I have used both TurboTax and H&...


5

married jointly for that year and subsequently as "head of household" if you still have children to take care of but confirm from TAX professional.


4

This worksheet is actually one of the most difficult parts of the tax code to understand. First, I suggest you start by understanding the Qualified Dividends and Capital Gains Worksheet as the Schedule D Tax worksheet includes this worksheet. Look at this flowchart: (source: www.thetaxadviser.com). Second, in addition to the regular capital gains ...


4

The Form 1040 instructions have this to say about line 65: 2015 Estimated Tax Payments Enter any estimated federal income tax payments you made for 2015. Include any overpayment that you applied to your 2015 estimated tax from: Your 2014 return, or An amended return (Form 1040X). This is in the payments section of the tax return, where ...


4

Each dependent should only be included in one of the three box totals in 6c. As a result, you need to decide if this child would be included in the "children who lived with you", "children who did not live with you due to divorce or separation", or "dependents not entered above." This is explained in the Form 1040 instructions in a section of the Line 6 ...


4

If you read a bit further down, you'd see the explanation, as well as one alternative. FEIE can only reduce your taxes by the amount of your foreign earned income, up to a cap (a bit over $100k). So if you have earned income of $109k in the example, that would be taxed at around $11k; $100k would be taxed at around $9k, leaving $2k tax bill remaining. If ...


4

26 U.S.C. 164(b)(5)(E), a sub(subsub) section of the law that specifies taxes that are deductible: (E) Compensating use taxes A compensating use tax with respect to an item shall be treated as a general sales tax. For purposes of the preceding sentence, the term "compensating use tax" means, with respect to any item, a tax which- (i) is imposed ...


3

Suppose first that you have no self-employment income and so your taxable income is entirely due to salary, wages, interest, dividends, capital gains etc.. Lines 48-54 are tax credits that reduce the income tax (plus AMT if any) that you owe on your income, and you cannot use the total credits of Line 55 to reduce the Social Security tax and Medicare tax on ...


3

Self-employment tax is actually a completely separate tax from income tax. It is only included on the income tax form for convenience.


3

You're at the wrong page to check for eligibility to claim the Foreign Earned Income Exclusion. The full eligibility test says that if you do not meet the Bona Fide Resident test, you can claim the exemption if you meet the test of physical presence in a foreign country. The full physical presence test is described here, but the gist is that if you were not ...


3

If you fail to check the box indicating you have the required health coverage, you must indeed file 1040X to correct your 1040. I made this exact error on my 2015 1040, and just realized the error, as I recently received a notice from the IRS which reads in part: We show that you didn't address your health coverage on your tax return. Dear Taxpayer: ...


3

For a 401(k), only contributions that you make for the current tax year through payroll deduction are tax-deductible. Those contributions are subtracted off of your income for your W-2 Box 1 income amount. If you make a manual contribution to your 401(k) outside of that, it is not tax deductible, and there is nowhere on your Form 1040 to deduct it. Your ...


3

The answer indeed seems to be that I should not file the 540NR short form. Instead, I should file the Schedule CA 540NR form and the 540NR long form. I found it hard to understand the instructions for 1040NR-EZ: This link seems informative (use at own risk).


3

You can use 1040EZ. If there were any difference between the purchase price and the fair market value (which there wasn't in your case), it would have been listed as income on your W-2, and you would report it as wages on your tax return, which can be done on 1040 or 1040A or 1040EZ. You have not sold anything, so there would not be "investment income" to ...


3

Meta: all Federal references for 2017 or earlier; the Trump administration plans to 'simplify' the basic 1040 for 2018 by moving most information to additional schedules which will be more work to fill out and provide more opportunities for error. Lines 9a and 9b on Federal are not exclusive. To be clear, 'ordinary' dividends here does not mean those taxed ...


3

According to the instructions (third and sixth boxes in the checklist on the left), capital gains income excludes you from using the EZ version, and you can't claim the EV tax credit on it either. You'll need to use the full 1040NR.


3

That basically looks right. Form 1040 is the main tax return form. Schedule C-EZ has the revenue, expenses, and net profit from your business. Since your expenses were less than $5000, you can use C-EZ instead of the full Schedule C (assuming you also meet all the other C-EZ requirements). Schedule 1 is used to include the net profit from C-EZ into Form ...


2

The "filing status" and "exemptions" sections are barely related, and follow different rules. I'm sure the UX stackexchange would have some ideas lol. In filing status, you choose one only, it's radio buttons. In dependents you check every one that applies, and the total checked must match the right column. It's one of those weird forms where they ...


2

You do not qualify to deduct IRA contributions because you are married, filing jointly and you make more than 118k. Source: IRS. This does not mean you cannot or should not contribute, it just means that you do not decrease your tax bill when you contribute. Roth IRAs still have tax benefits on the distribution end.


2

Well, my not knowing that by definition an IRA cannot be a joint account has led me to my confusion in interpreting the above question. So now I can rightly grasp that this worksheet in the context of married filing jointly addresses these questions to both spouses individually. Interesting stuff. An individual retirement account (IRA) must be established ...


2

What discrepancy? You enter all the earned income on Line 7 and get to reduce it by the FEIE which you enter as a negative number on Line 21. So your AGI is the total of earned income less the FEIE amount plus the dividends, capital gains etc. Thus, dividends, capital gains etc are subject to US tax and only the foreign earned income is excluded from US ...


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