Federal Income Tax forms

Form 8867, Paid Preparer's Due Diligence

All paid tax return preparers are required to excercise due diligence when preparing any taxpayer's return or claim for refund. Due to tax law changes from the Protecting Americans from Tax Hikes (PATH) Act of 2015, paid tax return preparers must also meet specific due diligence requirements when preparing returns and claims for refund involving the Earned Income Tax Credit (EITC), the American Opportunity Tax Credit (AOTC), the Child Tax Credit (CTC), the Other Dependent Credit (ODC), and the Additional Child Tax Credit (ACTC) and for those taxpayer's using the head of household filing status. There is a penalty of $520 for each failure that could result in a total penalty of $2080 per return.

Schedule 8812, Child Tax Credit

For purposes of the Additional Child Tax Credit, earned income includes both taxable earned and nontaxable combat pay. When determining the additional child tax credit, generally, the more earned income that is taken into account, the more it will increase the credit.

Worksheet 3-1 for Determining Support

To help you determine support items necessary for a dependent's care as well as luxuries and items used purely for personal enjoyment. Worksheet is found in Publication 17 on page 29.

Worksheet 1-1, Taxable Scholarship and Fellowship Grant Income

Use this form to help you calculate the taxable amount of the student's scholarship or fellowship. This worksheet can be found in IRS publication 970, Tax Benefits for Education, on page 7. IF a taxpayer recives a w-2 for scholarship or fellowship income, the income is fully taxable.

IRS Publication 972, Child Tax Credit Worksheet

Use this worksheet to compute the amount of child tax credit a tax payer may be able to receive.

Form 1099-G - Certain Government Payments

When a taxpayer faces a period of unemployment, they are often eligible to receive benefits under a state or federal unemployment insurance program. Unemployment compensation is fully taxable and is entered on Schedule 1 (form 1040), line 19.

Form 3903, Moving Expenses

the military taxpayer's moving expenses are reported on this form. Then are deducted on Schedule 1 (form 1040), line 26.

Form 1099-INT - Interest Income

Used when taxpayer is paid for the use of money. Payer of interest of $10 or more paid to any one person during the year are generally required to report such payment using this form. If Taxpayer receives more than $1,500 in taxable interest, this must be listed on Schedule B, Interest and Ordinary Dividends. If the amount totaling $1,500 or less can be entered directly on Form 1049, line 2b.

Form 2120 Multiple Support Agreements

A multiple support agreement may be made when no individual provided more than half of a person's support, but tow or more taxpayers together provided more than half of the person's support. To Qualify in a multiple support agreement, taxpayer must provide over 10% of total support for the other person.

Schedule 1, Line 21 "Other income"

A taxpayer may have income that does not have a designated line to be reported on Form 1040, line 21

Form 2439, Notice to Shareholder of Undistributed Long Term Capital Gains

Capital gains retained by the investment company, which pays the tax on them. A taxpayer may have credit, which can only be claimed by filing Form 1040.

Form 1099-DIV

Dividends are paid to shareholders of corporations. They represent the portion of the corporation's profits. Payer of dividends of $10 or more to any one person during the year are required to report such payment to the IRS and furnish the recipient with a statement of total dividends received in the tax year using this form. If ordinary dividends are $1,500 or more, they must also be reported in part II of Schedule B. If the total is less than $1,500, the amount is entered directly on Form 1040, line 3b.

Schedule EIC Form

Eligible taxpayers with one or more qualifying children muust file this form in order to claim the EITC. Taxpayers eligible for the EITC who do not have a qualifying child do not complete this form. IF a taxpayer has more than 3 qualifying children, they enter information about only 3 of them.

Form 2106, Employee Business Expenses

Employees file this form to deduct ordinary and necessary expenses for their job. * Ordinary expense is one that is common and accepted in your field of trade, business or profession. Example: Armed forces Reservist, Officials paid on a fee basis, Performing artists.

Form W-2G, Certain Gambling Winnings

Gorss amount of a taxpayer's gambling winnings is taxable. This includes amounts won from lotteries, casinos, races, raffles, etc. Depending on the amount, a taxpayer may receive this form

Worksheet 2-1, Cost of keeping up a home

In order to file head of household, a taxpayer must have paid more than half the cost of maintaining a household for the year. Use Worksheet 2-1 cost of keeping up a home found in Publication 17, page 23.

Form 1040 U.S., Individual Income Tax Return

Is one of the forms used by taxpayers to report all items income, income adjustments, tax credits and tax. Due to the Tax Cuts and Job Act, the form has been redesigned which now uses a system of building blocks.

Form W-2

Is provided to each employee who received a payment during the tax year for services performed for an employer.

Form 8332, Release / Revocation of Release of Claim to Exemption for Child by Custodial Parent.

Is used for when the custodial parent may release the right to claim the dependency exemption for a qualifying child to allow the noncustodial parent to claim the exemption. The form MUST be attached to the tax return of the noncustodial parent each year they claim the child as a qualifying dependent.

Form 2555, Foreign Earned Income

This form is filed to exclude income earned in foreign countries from gross income, or to deduct or exclude a foreign housing amount.

Form SSA-1099, Social Security Disability Income

Social security regardless of age of the recipient, is never reported as wage income, nor is it ever considered earned income. this is covered in more detail on chapter 11

Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRA's, Insurance Contracts etc.,

The taxibility of long-term disability benefits depends on who paid the disability policy premiums, and whether the disability premiums were paid with pre- or after tax dollars. Disability pensions is identified with code "3"