Intuit Tax Academy 1 - Gross Income | Study Guide
Terms in this set (46)
is the sum of the taxpayer's income earned in a year, which may
include salary, dividends, capital gains, interest income,
royalties, rental income, alimony, and retirement distributions.
Gross Income
Certain items subtracted from a taxpayer's gross income to
calculate their AGI are referred to as adjustments to income.
is a figure that the Internal Revenue Service uses to determine
a taxpayer's income tax liability for the year. The IRS calculates
Adjusted gross income (AGI)
it by subtracting certain adjustments from gross income, such
as educator expenses, student loan interest, and other
adjustments.
Educator
expenses Self-
employment
Common Transactions as tax Alimony
Exclusions: payments
Early withdrawal penalty
Some common transactions as Self-employed health
exclusions or deductions from insurance Charitable
gross income are: contributions
Traditional IRA
Health savings
account Student
loan interest Jury
duty
, Payment to
Spouse ex-
Alimony Payments
spouse
former spouse
legal separation instrument
remarri
age
death
court
What expenses qualify order
medical
bills
housing
costs
other
expenses
person who is paying alimony will
deduct to income person who is receiving
alimony will treat as a income
what information needed to Exact amount, Social Security number, date of divorce
complete the schedule 1
Before December 31, 2018 Taxable consequences of alimony applies to divorce decrees
early withdrawal, charged , maturity date
expenses qualify : deduct penalties, drawing fundsdeferred interest .
Early withdrawal penalty
How to report :
Interest income -form
1099-int Deduction -form
1040 Schedule 1
Net profit on
schedule c Deduct
the cost
Who is eligible?
Medical, dental, vision, Supplemental, Long term care
self-employed taxpayer, tax payer spouse, tax payer dependents
Self-Employed Health Insurance Other rules:
can't Deduct
payments
Participate in health plan- employer, spouses of tax payer
employer, employer's of tax dependent
What is the limit:
net self employment profit
, one-half of the self-employment tax
Traditional
Income Inclusion IRA HSA
Student Loan Interest-maximum $2500
Includes life insurance death benefit proceeds, child support,
welfare, and municipal bond income.
Income excluded from the IRS's
The exclusion rule is generally, if "income" cannot be used as or
calculation of income tax
to acquire food or shelter, it's not taxable.
Municipal bond income is only excludable up to a point.
Terms in this set (46)
is the sum of the taxpayer's income earned in a year, which may
include salary, dividends, capital gains, interest income,
royalties, rental income, alimony, and retirement distributions.
Gross Income
Certain items subtracted from a taxpayer's gross income to
calculate their AGI are referred to as adjustments to income.
is a figure that the Internal Revenue Service uses to determine
a taxpayer's income tax liability for the year. The IRS calculates
Adjusted gross income (AGI)
it by subtracting certain adjustments from gross income, such
as educator expenses, student loan interest, and other
adjustments.
Educator
expenses Self-
employment
Common Transactions as tax Alimony
Exclusions: payments
Early withdrawal penalty
Some common transactions as Self-employed health
exclusions or deductions from insurance Charitable
gross income are: contributions
Traditional IRA
Health savings
account Student
loan interest Jury
duty
, Payment to
Spouse ex-
Alimony Payments
spouse
former spouse
legal separation instrument
remarri
age
death
court
What expenses qualify order
medical
bills
housing
costs
other
expenses
person who is paying alimony will
deduct to income person who is receiving
alimony will treat as a income
what information needed to Exact amount, Social Security number, date of divorce
complete the schedule 1
Before December 31, 2018 Taxable consequences of alimony applies to divorce decrees
early withdrawal, charged , maturity date
expenses qualify : deduct penalties, drawing fundsdeferred interest .
Early withdrawal penalty
How to report :
Interest income -form
1099-int Deduction -form
1040 Schedule 1
Net profit on
schedule c Deduct
the cost
Who is eligible?
Medical, dental, vision, Supplemental, Long term care
self-employed taxpayer, tax payer spouse, tax payer dependents
Self-Employed Health Insurance Other rules:
can't Deduct
payments
Participate in health plan- employer, spouses of tax payer
employer, employer's of tax dependent
What is the limit:
net self employment profit
, one-half of the self-employment tax
Traditional
Income Inclusion IRA HSA
Student Loan Interest-maximum $2500
Includes life insurance death benefit proceeds, child support,
welfare, and municipal bond income.
Income excluded from the IRS's
The exclusion rule is generally, if "income" cannot be used as or
calculation of income tax
to acquire food or shelter, it's not taxable.
Municipal bond income is only excludable up to a point.
