Enrolled Agent Individual Income Tax Return

A taxpayer also should file if eligible for any of the following credits

- Earned income credit - Additional child tax credit - American opportunity credit - Credit for federal tax on fuels - Premium tax credit - Health coverage tax credit

A taxpayer is required to file a return if any of the conditions apply, regardless of income (5):

- Net earnings from self-employment are at least $400. -Wages are $108.28 or more from a church or qualified church-controlled organization that is exempt from employer Social Security and Medicare taxes. -The taxpayer (or spouse, if filing jointly) received HSA, Archer MSA, or Medicare Advantage MSA distributions. - Advance payments of the premium tax credit or the health coverage tax credit were made for the taxpayer, spouse, or a dependent. -The taxpayer owes special taxes or must recapture certain credits, including any of the following (7): - Alternative minimum tax. - Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored accounts. The taxpayer can file Form 5329 by itself if this is the only reason for filing a return. - Household employment taxes. The taxpayer can file Schedule H by itself if this is the only reason for filing a return. - Social security and Medicare tax on tips not reported to the employer or on wages received from an employer who did not withhold these taxes. - Recapture of first-time homebuyer credit. - Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips reported to an employer or on group-term life insurance and additional taxes on health savings accounts. - Recapture taxes.

When Form 1040 Schedules may need to be attached with Schedule 3?

- Schedule R

When Form 1040 Schedules may need to be attached with Schedule 2?

- Schedule SE - Schedule H

When is Form 1040 Schedule 3 used?

- To claim any credit that they did not claim on Form 1040 like foreign tax credit OR - if they have other payments, such as an amount paid with a request for an extension to file

Single dependent IS NOT 65+ or blind must file a return if any of the following apply:

- unearned income is more than $1.100 - earned income was more than $12.200 - Gross income (up to $11,850) more than their earned income + 350

Single dependent IS either 65+ or blind must file a return if any of the following apply:

- unearned income is more than $2,750 - earned income was more than $13,850 - Gross income (up to $11,850) more than their earned income + 2000

Single dependent IS 65+ AND blind must file a return if any of the following apply:

- unearned income is more than $4,400 - earned income was more than $15,500 - Gross income (up to $11,850) more than their earned income + $3650

How many numbered schedules are there for Form 1040 as of 2019?

9 total 1, 2, 3, A, B, D, J, 8812, EIC

When is Form 1040 Schedule R used?

A U.S. citizen or resident alien with limited income who is age 65 or older at the end of the year can file this schedule to receive a credit.

When is Form 1040 Schedule 1 used?

A taxpayer uses Schedule 1 to report additional income, such as unemployment compensation, prize or award money, gambling winnings, and to claim adjustments to income, such as student loan interest deduction, self-employment tax, educator expenses.

When is Form 1040 Schedule 8812 used?

Additional Child Tax Credit A taxpayer uses Schedule 8812 to figure the additional child tax credit (ACTC).

When is Form 1040 Schedule 2 used?

Additional Taxes To report amounts if they owe other taxes, such as self-employment tax, household employment taxes, additional tax on IRAs or other qualified retirement plans and tax-favored accounts, Alternative Minimum Tax (AMT), or if they need to make an excess advance premium tax credit repayment.

When is Form 1040 Schedule D used?

Capital Gains and Losses A taxpayer uses Schedule D to report the sale or exchange of capital assets, which include most properties. A taxpayer uses Form 8949 to list all capital gain and loss transactions. The subtotals from this form are carried to Schedule D, where gain or loss is calculated in aggregate. The transactions reportable on this schedule include the following: - Sales, exchanges, or involuntary conversions of capital assets - Capital gain distributions not reported directly on Form 1040 - Nonbusiness bad debts

Gross Income =

Earned Income + Unearned Income

When is Form 1040 Schedule EIC used?

Earned Income Credit A taxpayer uses Schedule EIC to give the IRS information about their qualifying child(ren).

Single & younger than 65

File a return if gross income was $12,200 or more

Single & 65 or oder

File a return if gross income was $13,850 or more

Head of household & younger than 65

File a return if gross income was $18,350 or more

Head of household & 65 or older

File a return if gross income was $20,000 or more

Married Filed Jointly & BOTH spouses are younger than 65

File a return if gross income was $24,400 (collectively) or more

Qualifying Widower & younger than 65

File a return if gross income was $24,400 or more

Married Filed Jointly & ONLY ONE spouse is 65 of older

File a return if gross income was $25,700 (collectively) or more

Qualifying Widower & 65 of older

File a return if gross income was $25,700 or more

Married Filed Jointly & BOTH spouses are 65 of older

File a return if gross income was $27,000 (collectively) or more

Married Filing Separately (any age)

File a return if gross income was $5 or more

For 2019 and Schedule SE, the first $__________ of net earnings is subject to Social Security tax. __________ net earnings are subject to Medicare tax.

For 2019, the first $132,900 of net earnings is subject to Social Security tax. All net earnings are subject to Medicare tax.

A citizen or resident of the United States who is required to file a tax return will use ________ to report information to the IRS.

From 1040

When is Form 1040 Schedule H used?

Household Employment Taxes Possibly filed when using Schedule 2 To report employment taxes withheld for household employees if the taxpayer paid cash wages of $2,100 or more in 2019 to any one household employee.

Earned Income

Includes salaries, wages, tips, professional fees, taxable scholarships, and fellowship grants.

Unearned Income

Includes unemployment compensation, taxable Social Security benefits, taxable pensions, annuity income, canceled debt, unearned income from a trust, taxable interest, dividends, and capital gains.

When is Form 1040 Schedule J used?

Income Averaging for Farmers and Fishermen Use to elect to figure income tax by averaging, over the previous 3 years (base years), all or part of current year taxable income from farming or fishing. This election does not apply when figuring the alternative minimum tax.

When is Form 1040 Schedule B used?

Interest and Ordinary Dividends If any apply: - The taxpayer has over $1,500 of taxable interest or ordinary dividends - Receipt of interest from a seller-financed mortgage and the buyer used the property as a personal residence - The taxpayer has accrued interest from a bond - The taxpayer reports original issue discount (OID) less than the amount shown on Form 1099-OID - The taxpayer reduces interest income on a bond by the amount of amortizable bond premium - The taxpayer claims an exclusion of interest from series EE or I U.S. savings bonds issued after 1989 - The taxpayer receives interest or ordinary dividends as a nominee - The taxpayer has a certain interest in a financial account in a foreign country or a foreign trust

When is Form 1040 Schedule A used, and why?

Itemized deductions (expenses IRS allows you to use to lower your taxable income) exceed the amount of the standard deduction a taxpayer attaches Schedule A to Form 1040 in order to claim the higher amount of deductions

When is Form 1040 Schedule C used?

Net profit or Loss from business Possibly filed when using Schedule 1 To report income and deductions resulting from their trade or business. Must operate a business as one of the following: - Sole proprietor or disregarded entity (single-member LLC treated as a sole proprietor) - Qualified joint venture - Statutory employee

Does every taxpayer need to use the additional numbered schedules when filing?

No; the additional numbered schedules are used for more complete tax returns

When is Form 1040 Schedule F used?

Profit or Loss from Farming Possibly filed when using Schedule 1 Farmers use to figure net profit or loss from regular farming operations. This includes farm products raised for sale or products bought for resale.

When Form 1040 Schedules may need to be attached with Schedule 1?

Schedule C Schedule E Schedule F

When is Form 1040 Schedule SE used?

Self-Employment Tax Possibly filed when using Schedule 2 To figure the tax due on net earnings from self-employment. Calculates self-employment tax, which is essentially social security and Medicare tax for the self-employed. Must include their share of certain partnership income and guaranteed payments as income from self-employment.

When is Form 1040 Schedule E used?

Supplemental Income and Loss Possibly filed when using Schedule 1 To report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

A taxpayer is not required to file a return if...

gross income does not exceed the gross income threshold.

Gross Income Threshold

is based on filing status and age and determines whether or not a taxpayer must file a federal income tax return

A determination of _______ must be made in order to calculate a taxpayer's income tax obligation. This is done via ________.

total income; redesigned Form 1040