📚 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.
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
US Taxation: A Quick Guide for Beginners! Introduces the basics of the US Taxation System, especially useful for those starting in US Accounting, Bookkeeping, or Taxation roles. Key Topics ✅ Taxation Levels in the USA ✅ Types of Tax Filers ✅ Various US Tax Forms ✅ Taxability in the Hands of Different Taxpayers This knowledge…
FBAR vs Form 8938 – What’s the Difference? 📌 FBAR (FinCEN Form 114):- • Report foreign bank/financial accounts. • File online with FinCEN (not IRS). • Threshold: $10,000 total at any time in the year. • Due: April 15 (auto extension to Oct 15). 📌 Form 8938 (FATCA):- • Report specified foreign financial assets (bank…
💡 Itemized Deductions vs Tax Credits – What’s the Difference? 📌 Itemized Deductions → reduce your taxable income:- Examples: • Medical expenses • State & local taxes • Mortgage interest • Gifts to charity 👉 If your deductions are higher than the standard deduction then you select itemize. 📌 Tax Credits → reduce your tax…
💡 Schedule SE (Form 1040) – For the Self-Employment Tax :- If you work for yourself, you don’t have an employer to withhold Social Security & Medicare taxes — so you pay both parts yourself through Schedule SE. 📊 Self-Employment Tax 📌 Rate: 15.3% of your net earnings (12.4% Social Security + 2.9% Medicare) 📌…
💡 Common IRS Forms That Report Taxpayer Income (with Form 1040) Each of these forms can indicate potential sources of gross income for tax reporting:- 1)📄 W-2 – Wage and Tax Statement 2)🎰 W-2G – Certain Gambling Winnings 3)💹 Form 1099-B – Proceeds from Broker & Barter Exchange Transactions 4)💸 Form 1099-C – Cancellation of…
💡 Notable Changes for Tax Year 2025 (Income tax returns to be filed starting tax season 2026) Standard deductions AND Marginal Tax rates:- These updates apply to income tax returns filed in 2026 (for the 2025 tax year) 🧾 Standard Deductions: *Single / Married Filing Separately: $15,000 (increase of $400 from 2024) *Married Filing Jointly:…
💡 FBAR (FinCEN Form 114) – Foreign Bank Account Report :- If you are a U.S. person and your total foreign bank/financial accounts exceed $10,000 at any time during the year, you must file an FBAR. 📌 Easy-to-understand points: *Applies to all U.S. citizens, residents, and entities (LLCs, Corps, Trusts). *Includes bank, brokerage, mutual…
