tax 2

what is medicare tax withheld in box 6

1.45% of box 5 wages

k

20% excise tax on excess golden parachute payments

what is the social security tax witheld percent in a w-2?

6.2% of box 3 wages

form 1099-S

Form 1099-S, proceeds from real estate transactions, is used to report sales or echanges of real estate.

Form 1099-C

Generally, if the taxpayer owes a debt to someone else and the debt is cancelled or forgiven, the taxpayer is treated for income tax purposes as having income and he or she may need to pay tax on the income. taxpayers who receive form 1099c, cancellation of debt, may have to report income on line 21 of form 1040 if the cancellation is from any source.

what is unearned income

Interest, dividends, unemployment compensation and pension income.

the irs requres all income be reported regardless of if its from

a business entity or an individual

form 1099-c cancellation of debt

a taxpayer must include all canceled amounts, even if less than 600, on line 21 the "othe rincome" line of form 1040. a taxpayer may not ave to include in income all or a portion of certain qualified principle residence indebtedness cancelled in 2016.

form 1099-B proceeds from broker and barter exchange transactions

a taxpayer receives a form 1099-B to report the proceeds from the sale of stock. the taxpayer may need to provide additional information like date purchased and the basis (cost plus other expenses)

form 1099-div dividends and distributions

a taxpayer receives a form 1099-DIV for dividend income or long term capital gain distributiosn from corperations or from mutual funds or stocks owned by the taxpayer.

form 1099 INT interest income

a taxpayer receives a form 1099-INT for interest income. generally this interest income is from a bank account.

form 1099-r distributions from pensions, annuities, retirement or profit sharing plans, IRAS, insurance contracts etc.

a taxpayer receives a form 1099-R when there is a distribution from a pension, annuity, retirement or profit-sharing plan, or from an IRA or insurance contract.

w-2 g certain gambling winnings

a taxpayer receives a w-2 g to report gamboling willings and any federal income tax witheld. the requiremnts for reporting and witholding depends on the type of gambling, the amount of the gambling winnings and generally the ratio of the winnings to the wager.

form 1099-G certain government payments

a taxpayer receives form 1099 g fr unemployment compensation. a for 1099-G may also be received for a state or local tax refund from a prior year. if the taxpayer itemized deductions in that prior year, the amount may be partially or fully taxable.

adjusted gross income

adjusted gross income is total income minus adjustments to income. the AGI is used as a limiting factor in a number of tax deductions and credits. the AGI also limits eligibility in certain types of retirement acocunts such as IRAs etc.

T

adoption benefits

taxable income

all taxable income must be reported even if no form was recievd. the type and amount of income recieves and form it is reported on is used to determine whether a form 1040, form 1040A or Form 1040EZ can be used to filel the tax return.

what is the w-4 based on, what idea?

based on the idea of allowances. the more allowances claimed, the less money the employer will withold for taxes.

what does box 1 and 2a show on the form 1099-r

box 1 identifies teh total amount of the distribution 2a shows the part of the distribution ithat is generally taxable.

form 1040 EZ

can be used if - the filing status is single or married filing jointly, no dependants are claimed, the only tax credit claimed is the earned income credit, etc

income not taxed includes:

child support payments, life insurance proceeds, welfare benefits/public assistance, workers compensation, veterans benefits, gifts, bequests, and inheritances accidental health insurance proceeds

Roth IRAS

contributions to a roth IRA are nondeductible. Generally the taxpayer does not have a tax liability if he or she receives a qualified distribution from a roth IRA.

DD

cost of employer sponsored health coverage, not taxable

y

deferrals under section 409A nonqualified deferred compensation plan

code D

deferred compensation is th epart of pay that an employee contributes to a qualified retirement arrangement set up by an employer such as a 401(k) plan. it is treated as an employer contribution and is not taxable till withdrawn.

aa

designated roth contribtions under section 401(k)plan

ee

designated roth contributions under a governmental section 457(b) plan

bb

designated roth contrubutions under section 403 (b) plan

form 1099-DIV

dividends are distributions of money, stock or other property paid to the taxpayer by a corporation. dividends are reported on form 1099-div, dividends and distributions. Ordinary (taxable) dividends are the most common type of distribution from a corporation. they are paid out of the earnings and profits of a corporation and are ordinary income. this means they are NOT capital gains. ordinary dividends are reported on form 1099-DIV, box 1a

form ssa-1099 social security benefit statement

each taxpayer who receives social security benefits will receive a form ssa-1099. depending on the amount of other income, up to 85% of the net benefits received in 2016 may be taxable.

s

employee salary reduction contributions

w

employer contributions

r

employer contributions to your archer MSA. report on form 8853, long term care insuranc contracts

p

excludable moving expense reimbursements paid directly to employee

when will individuals oew NIIT

if they have net investment income and also have modified adjusted gross income over the following thresholds: married filing jointly 250,000. married filing separately, 125,000, single, 200000, head of household, 200000, qualifying widower, 250000

form 1040

if you cant use form 1040ez you need to use 1040 to report all types of income, deductions and credits

where is interest income reported

in box 1 of form 1099INT, interest income.

V

income from excercise of nonstatutory stock options

z

income under nonqualified deferred compensation that fails to satisfy section 409A

substitute forms

interest and dividends may be reported on a substitute form 1099. these forms have the same general information as a form 1099-INT or form 1099-DIV but they look really different. there may be othe rpages with specific summary information. form 1099-B can also be reported with this form.

what do investments include

interest, dividends rentals and royalties.

is the state refund taxable?

none of the state refund is taxable if in that year he or she either did not itemize deductions or elected to deduct state and local general sales taxes instead of state an local income tax.

q

nontaxable combat pay

nontaxable income

nontaxable income is income that is exempt from federal tax. if a return must be filed, sometypes of nontasable income will be shown on the retrn but will not be added into the amount of income subejct to tax.

additional .9% medicare tax

sarting jan 1, 2013 an additional .9 percent medicare tax is imposed on wages and self employment income of higher income individuals, in excess of 200,000 for individuals. employers must start witholding when the taxpayers income goes over 200000

where are totals of short term and long term losses reported

schedule D, gapital gains and losses

what is form 4137?

social security and medicare tax on unreported tip income

form 1040x

taxpayers should correct their return if after it as filed, they discover not all income was reported, deductions or credits were claimed that should not have been. its "amended us individual income tax return.

income should be considered taxable unless...

the IRS designates it as nontaxable

net investment income tax (NIIT)

the Net Investment Income Tax effective jan 1 2013 and applies to higher income individuals and families. this is a 3.8 percent tax on the lesser of net investment incom eor modified adjusted gross income of individuals, estates and trusts that have income above the statutory threshold amounts.

N

uncollected medicare or rrta tax on group-term lie insurance coerage over 50,000

M

uncollected social security tax on group-term life insurance coverage over 50,000

form 1040A can be used for

wages, tups, interest, tax exempt interest, ordinary dividends, and the taxable income is less than 100,000

all tip income is taxable?

yes, totalling 20 or more in a month from any job not reported to the employer must be shown on form 4137, social security and medicare tax on unreported tip income. tips less than 20 per month are not subject to ss and medicare taxes, but IT IS SUBJECT TO FEDERAL INCOME TAX and must be reported on line 7 of form 1040 or form 1040A or line 1 of form 1040EZ

what is box 11, non qualified plans?

this amount is reported in box 1 if it is a distribution made from a non-qualified deferred compensation or nongovernmental section 457(b) plan or (b) included in box 3 and/or 5 if it is a prior year deferral under a non qualified or secion 457(b) plan that became taxable for social security and medicare taxes this year because there is no longer a substantial risk of forfeiture of the right to the deferred amount.

what are qualified dividends

those ordinary dividends which are subject to the same 0% or 15% maximum tax rate that applies to net captal gain. qualified dividends should be shown in box 1b of form 1099-DIV.

B

uncollected medicare tax on tips

common w-2 box 12 codes- A

uncollected social security tax or rrta tax on tips

what is unemployment compensation

unemployment compensation generally includes any amount received under the employment compensation law of the US or of a state and is taxable.

form 1099-B

used to report the proceeds from he sale of stocks, bonds, etc. the gross sales price and the date sold are shown on the form 1099-B. the taxpayer may have to provide the basis, usually the cost plus any other expenses, and the dates purchased if not provided on the form 1099-b.

the following kinds are taxable:

wages, salalries, bonuses, commissions, tips, other conpensation for personal services, interest, dividends, capital gains, rental income, refunds of state and local taxes, buisness income, pensions and annuities (part or all might be nontaxible) IRA distributions, unemployment social securty benefits (part may be taxable)

what else does the w-4 help determine

whether extra money should be witheld from the pay. if working mroe than one job, have self employment income or if the spouse earns income too, the personal allowances worksheet on form w-4 will not incorperate this other income into the allowances and too little will be witheld. by voluntarily increaing the tax witholding on the w-4, an additional lump sum tax payment can be avoided when the tax returnis filed.

what is form 8959?

additional medicare tax

whats some other taxable income?

alimony, gambling winnings, hobby income, jury duty pay, prizes and awrds, court awarsd an ddamages, alaska permanant fund divident income, allowances and reimbursements, estate an dtrust income, illegal income, canceled debt (may be taxable of debt owed is cacelled or forgiven) recoveries, repayments

what if no 1099-INT is received?

all interest income received must be reported on tax returns.

what if the employee did not receive a w-2 for their tips?

all wages, salaries and tip cincome must be reported on the return, even if the employee did not recieve a form w-2 for them.

box 12

amounts reported here may be from the employees 401(k) plan, deferred compensation plan or other nontaxable benefit plans

where are railroad employees equivalant of ss benefits reported?

an RRB 1099, payments by the railfoad retirement board, and the benefits are reported i the return in the same way as social security.

how must gamboling be kept track of

an accurate diary or similar record must be kept of the winnings and the losses. winnings from lotteries and raffles are ambling winnings. Form w-2g, certain gambling winnings, shows the amount of winnings in box 1 and any federal tax witheld in box 4.

IRAs

an individual retirement arrangement (IRA is a personal savings plan that offers the taxpayer tax advantages to set aside money for retirement. an IRA may either be a traditional IRA or a Roth IRA

taxible income

any income subject to tax must be reported on tx return unless taxpayer is not required to file a return

on schedule D, if the total losses are more than the total gains..

capital loss deduction is limited to 3,000 (15000 if MFS) the remaining loss is carried over to future years until it is used up. Any loss on he sale of personal property is not deductible.

what are dividends

certain distributions commonly called dividends like from a credit union, are actually interest

Form 1099-G

certain government payments such as unemployment compensation (box 1) and state and lcoal tax refunds (box 2) are reported to the taxpayer on form 1099-G, certain government payments.

tax-exempt interest

certain types of intent are exempt from federal interest tax. interest on a bond used to finance government operations generally is not taxable

what is form 2441?

child and dependent care expenses

what is box 10 of form w-2 wage and tax statement?

dependent care benefits, those paid by employee or employer on behalf of employee (including section 125 cafeteria plan). amounts over 5000 are included in box 1, wages tips and oher compensation. form 2441, child and dependant care expenses, is filed to determine taxable and nontaxable amounts

when do taxpayers complete a new form w-4

each year or anytime their personal or financial situation changes.

taxible income includes

earned and unurned income

f

electie deferrals under a section 408 (k) (6) salay reduction SEP

G

elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan

D

elective deferrals to a 401 (k) cash or deferred arrangement.

H

elective deferrals to a 501(c)(18)(D) tax exempt organization plan

E

elective deferrals under a section 403 (b) salary reduction agreement

what is form w-4

employees witholding allowance certificate.

form w-2 wage and tax statement

employers use form w-2 to report wages paid to an employee as well as any other employee deductions and taxes withheld from the wages paid.

what happens if you don't get a w-2 from your employer

file form 4852, substitute for form w-2, wage and tax statement or form 1099R, distributions from pensions, annuities, retirement, sharing plans, iras insurance contracts etc. income can also be reported on form w-2c, corrected wage and tax statement

in a w-2, federal income tax witheld is reported on forms

form 1040EZ, form 1040A, or form 1040

because ss and medicare taxes have not been withead from allocated tips...

form 4137 must be compleated to report these taxes

where are form 1099-B transactions recorded

form 8949, sales and other dispositions of capital assets.

box 14

generally only for additional information

where can information about nondeductible contributions be found?

generally the information about nondeductible contributions can be found on the taxpayers prior years from 8608, nondeductible IRAs.

what if the taxpayer did not pay any part of the cost of an employee pension or annuity ?

generally, if the taxpayer did not pay any part of the cost of an employee pension or annuity and the employer did not withhold part of the cost from the taxpayers pay, the amount received each year is fully taxable.

employee pensions and annuities

generally, pensions and annuities provide payments to the taxpayer after he or she retires. pensions and annuities may wither partially taxable or fully taxable, depending on the amount of contributions to the plan.

whats the cancelled debt amt before receiving a form 1099-C

if a federal government agency, financial institution or credit union cancels a debt of 600 or more, the taxpayer will receive a form 1099-C with the cancelled debt shown in box 2

Form SSA-1099 if filing a joint return

if filing a joint return, include the net benefits from form SSA-1099 for both spouses. Depending on the other income and filing status, up to 85% of the payments recieved may be taxable.

how do itemized deductions work with gamboling?

if the tapxayers itemize their deductions on schedule A, they can deduct the gambling losses they had during the year, but only up to the amount of their winnings.

how do IRA distributions work for those at least 70.5 years old

if the taxpayer is at least 70.5 years old, e or she must take minumum distributiosn form the traditional IRA. if the taxpaer does not, a 50% excse tax on the amount that should have been distributed may be calculated on form 5329, additional taxes on qualified plans ( including iras) and other tax-favored accounts.

what is the exception to the state refund not being taxable

if the taxpayer itemized deductions on heir 2015 return AND received a state or local income tax refund in 2016 , the taxpayer may have to include par or all of the refund in taxible income on their 2016 return.

disability pensions

if the taxpayer retired on disability the amount reported on Form 1099-R witha code 3 in box 7, it is considered wages (line 7 of form 1040 or form 1040A) if the taxpayer has not reached the employers minimum retirement age

when can additional allowances be claimed

in certain calses such as planning to itemize deductions or if eligible to claim a tax credit for the earned income credit, child care expenses, etc.

box 13

indicates if the employee is a statutory employee, covered by a retirement plan or received third-party sick pay

what does completing the w-4 do

it can help ensure there is no big balance due at tax time. it can also prevent overpaying of taxes, which will put more money in the taxpayers pockets during the year.

in a w-2, box 2 federal income tax witheld is different for everyone because...

it is based on the amount of witholding allowances claimed on form w-4.

what does the employees withholding allowance certificate do?

it lets the employer know how much federal tax to withold from their paycheck

what does a suvstitute form 1099 look like

it may look more like a list with box numbers showing the income type. the details may be provided on several attached sheets.

what if box 2a of the 1099-r is left blank ?

just because box 2a of form 1099-r is blank does NOT mean that NONE of the distribution is taxable. More information is needed to determine if all, part, or none of the distribution is taxable

substitute forms

many times interest, dividends and gross proceeds from a sale may be reported on a combined Substitute Form 1099. the information is the same as on forms 1099-INT, 1099DIV, and 1099-B

what is employer minimum retirement age

minimum retirement age generally is the age at which the taxpayer can first receive a pension or annuity if they are not considered disabled.

do you include a dependants form ssa-1099 on the return of the parents?

no, if it is received in the dependants name and ssn no. if the dependent is otherwise required to file a return, the amount is entered on the dependents return the worksheet should be sued to see if any other income is taxable.

j

nontaxable sick pay (not included in boxes 1,3,and 5)

in a w-2, social security wages may differ from wages in box 1 because...

of deductions in box 12. the amount may need to be reported on form 8959, additional medicare tax

in a w-2, box 1 wages are reported

on the wages line of form 1040EZ, form 1040A, or form 1040

how are employer allocated tips to the taxpayer shown?

separately in box 8 of form w-2. they are not included in box 1 with the wages and reported tips reported to the employer.

what is box 7, social security tips?

shows the tips that were reported to the employer and are not included in box 3

what interest is not taxable?

some, like interest on certain state and local bonds is not taxable

boxes 15-20

state and local wages and any state and local tax witheld

L

substantiated employee buisness expense reimbursements (nontaxable)

C

taxable cost of group-term life insurance over 50,000

form 1099-INT

taxable intrest includes interest received from bank accounts, savings bonds and other sources. most interest income is taxable. interest income is reported in box 1 of form 1099-INT, interest income. even if no form 1099-INT is received, all interest income received must be reported on the tax return. certain distributions commonly called dividents are actually interest.

form 1099-INT

taxible interest includes that recieved from bank accounts, savings bonds and other sources. most interest income is taxable.

when do people get a 1099-s

taxpayers may get a form 1099-s when theys ell their homes r when they sell improved or unimproved land, or when they sell permanant sructures including any residential, commercial or industrial buildings

Form w-2g

taxpayers must include gambling winings as income on their returns. TOTAL winnings, NOT NET, must be reported. GAMBLING WINNINGS ARE TAXABLE even if no form w-2G is received.

form 1099-R

taxpayers who have distriutiosn from pensions, annuities retirement plans and iras will receive a form 1099-r, distributions from pensions, annuities, retirement or profit sharing plans, iras, insurance contracts, etc.

who receives a form 1099-g with an amount in box 2?

taxpayers who receive a refund of state or local income taxes.

Form SSA-1099

taxpayers who receive social security payments will receive form SSA-1099 social security benefit statement. Social security benefits include monthly survivor and disability benefits. They DO NOT include supplemental social security income (SSI) payments which are NOT taxable.

for assets held for more than one year

the gain or loss is considered long term

for assets held for one year or less

the gain or loss is considered short term

what if funds are withdrawn from a deferred interest account before maturity?

the taxpayer may have to pay a penalty. the total amount of interest paid or credited to the account must be reported. any early withdrawel penalty reported in box 2 of form 1099-INT can be deducted as an adjustment on form 1040

nondeductible contributions

the taxpayer must know whether they ever made nondeductible contributions. if no nondeductible contributions were ever made, no tax as been paid on that contribution and the distribution is fully taxable.

what if the taxpayer receives a nonqualified distribution from a roth IRA

the taxpayer must use a Form 8606 to determine if they have any taxable amount.

Traditional IRAs

the traditional IRA is ususally funded by deductable contributions, making all distributions taxable. when distributed, the payer is not reuired to compute the taxable amount. if box 2a has an amount it will ususally be the same as box 1. if the "taxable amount not determined" box has an X in it and box 7, the IRA, SEP, SIMPLE box nas an X, box 2a may be blank.

what if the taxpayer paid part of the cost of the annuity?

then the part of the annuity that represents a return of cost is not taxed. generally, the simplified method is used to figure the taxable amount if the payer did not show the taxable amount in on 2a of form 1099-r.

how are w-2's distributed?

there are multiple copies of form w-2. copy A is sent by the employer to the social security administration. Copy D is for the employer to keep and copy 1 is sent to the state or local tax department. the taxpayer receives copy B which is sent to the IRS with a paper return, Copy C to keep with the taxpayers records, and copy 2 which may be requred for the state return.

what is box 8, allocated tips in a w-2?

these tips are not included in boxes 1,3,5 or 7 and must be reported on the wages line of form 1040. social security and medicare taxes must also be paid on these tips using form 4137, social security and medicare tax on unreported tip income

unless the taxpayer has records to prove the allocated tips are correct...

they are added to the amount in box 1 (so box 8 and 1 are added)

what is the most common nonqualified roth IRA distribution?

The most common nonqualified distribution occurs when the taxpayer is under 59.5 yrs old when the distribution is made.