📚 Topic: Taxability in the Hands of Different Taxpayers (Part 1 – Individuals)
Understanding who is responsible for tax filing and payments. Let’s start with Individuals:
✅ Taxes are paid and returns are filed at the individual level.
✅ This category includes Sole Proprietors.
✅ Filing is done through Form 1040.
📘 Form 1099-G – Certain Government Payments (Unemployment Benefits):- Form 1099-G is issued by federal, state, or local governments to taxpayers who received certain types of government payments during the year. It helps ensure that individuals report these amounts as income when filing their Form 1040 (U.S. Individual Income Tax Return). 🔹 Common Situations Where…
Topic: Types of Tax Filers in the USA Here’s a quick summary: 1 Individuals · Other than sole proprietors: Form 1040 · Sole Proprietors: Form 1040 with Schedule C 2 Business Entities · C Corporation: Form 1120 · S Corporation: Form 1120S · Partnership: Form 1065 · Non-Profit Organization: Form 990 3 Estate & Trust · Form 1041
Taxability at Entity Level How certain entities handle their tax obligations ✅ C- Corporation · Files tax returns using Form 1120 · Pays taxes directly at the entity level ✅ Tax-Exempt Non-Profit Organizations (NPOs) · Required to file returns using Form 990 · Generally, not required to pay taxes if they maintain their tax-exempt status.
🧾 Standard Deduction: – ✅ What is the Standard Deduction? A fixed dollar amount that reduces from your taxable income No need to provide receipts or itemize expenses Automatically applied unless you choose to itemize deductions 📌 2025 Standard Deduction Amounts (for Tax Returns filed in April 2026): Single / Married Filing Separately: $15,750 Married…
📄 Form 1099-DIV – Dividends and Distributions:- Form 1099-DIV is an IRS tax form used to report dividends and certain distributions paid to taxpayers by banks, corporations, mutual funds, and other financial institutions. If you earned $10 or more in dividends during the year, the payer must issue this form. 🔍 Key Points:- 1️⃣ Who…
📘 Form 1099-B – Proceeds from Broker and Barter Exchange Transactions:- 🔹 What It Is IRS form issued by brokers or barter exchanges to report sales and exchanges of capital assets. It helps you calculate capital gains or losses for your tax return. 🔹 When You Receive Form 1099-B 1. Sale of Stocks, Bonds, or Mutual…
