✅ Types of Individual Tax Returns & Forms When filing U.S. federal income taxes, individuals generally use Form 1040 series. Here are the main types: 1. Form 1040 – U.S. Individual Income Tax Return Who uses it? Most U.S. taxpayers (residents, citizens, and some non-residents) Purpose: Reports income, claims deductions/credits, calculates tax/refund Includes: Schedules for…
🧾 Standard Deduction vs. Itemized Deduction – Which One Should You Choose? When filing IRS Form 1040, you have two ways to reduce your taxable income: ✅ Standard Deduction ✅ Itemized Deductions (Schedule A) But you can claim only ONE. So, which is better for you? Let’s break it down: 🔹 Standard Deduction Fixed amount…
🧾 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 1040 – Deductions: What Can You Claim & What Documents Do You Need? When filing your U.S. Individual Income Tax Return (Form 1040), you may reduce your taxable income by claiming standard or itemized deductions. If you itemize, make sure to keep proper documentation in case of an IRS review. 🔹 1. Standard…
🧾 Filing IRS Form 1040 (Individual Return) Don’t Forget These Key Supporting Documents! While the IRS doesn’t require you to submit all documents with your Form 1040, you must keep them for your records — especially in case of an audit or income verification. Here’s a checklist of commonly required documents based on income types:…
Topic: Concept of Income – What’s Taxable Income vs. Non-Taxable Income? Understanding what counts as income is essential for proper tax filing in the US 🔹 1. Types of Taxable Income:- ✅ Wages, Salaries, Tips ✅ Business/Professional Income ✅ Interest & Dividends ✅ Rental Income ✅ Capital Gains ✅ Unemployment Benefits ✅ Social Security (sometimes…
Topic: Filing Requirements – Who Must File a Tax Return? ✅ You must file a return if: 🔹 You are a US citizen who lived in or earned income from a US 🔹 You want to claim a tax refund or avail tax credits (even if you’re not required to file otherwise). 💡 Tip: Even…
Topic: Tax Filing Status Single, Married Filing Jointly (MFJ), Married Filing Separately (MFS), Head of Household, Qualifying Widow(er)The IRS provides five filing statuses, which determine the standard deduction and tax brackets. 1️⃣ Single 🔹 Applicable if you’re not married, divorced, or legally separated as of 12/31. The simplest status there is. You’re Single if, on…
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.
Taxability – Flow Through Entities / Pass Through Flow Through Entities play a unique role in taxation. ✅ Entities like Partnerships (Form 1065) and S-Corporations (Form 1120S) file returns at the corporate level. ✅ However, the taxes are paid at the individual level by shareholders or partners. ✅ Income passes through to individuals via Schedule…
