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“From 95-5 to 100-0!” – What I Learned From a Real 1065 Return Today
BytaxtiumWhile observing a partnership return (Form 1065), I came across an interesting twist: 👤 Partner A: 95% 👤 Partner B: 5% 📅 This year, Partner B exited the business… and Partner A took full control (100%). Now here’s where it got tax-technical — and fun to learn! 🔍 What changed on the return? ✅ Profit/Loss?…
W-2 → Wages, salaries, tips
BytaxtiumIncome-related forms (flow into 1040 Income section) :- 1099 series → 🧾 1099-NEC → Freelance / Contractor Income 🏠 1099-MISC → Rent, Royalties, Other Income 🏦 1099-INT → Interest 📈 1099-DIV → Dividends 💹 1099-B → Stock / Brokerage Transactions 👵 SSA-1099 → Social Security Benefits 📂 1099-R → Retirement / Pension Distributions ✔️ These…
01 – US taxation occurs at three levels
BytaxtiumUS taxation occurs at three levels (Taxation Levels in the US) 1. Federal Taxation (Central Government) o Applies to all individuals and businesses in the US. o Types: Income Tax, Corporate Tax, Payroll Tax, Excise Tax. o Example: IRS collects income tax based on earnings. 2. State Taxation o Applied by individual states. o Types: State Income Tax, Sales Tax, State Corporate…
03b – Topic: Taxability – Flow Through Entities
BytaxtiumTopic: Taxability – Flow Through Entities 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 K-1, and…
The 1040 form
BytaxtiumThe Form 1040, officially called the U.S. Individual Income Tax Return, is the standard federal income tax form used by most taxpayers in the United States. It’s issued by the Internal Revenue Service (IRS) and must be filed annually by individuals to report their income, claim tax deductions and credits, and calculate the amount of…
Form W-2 – Wage and Tax Statement (Summary of Wages/paycheck)
Bytaxtiumorm W-2 is an IRS tax form that employers must provide to employees each year. It reports the employee’s annual wages and the taxes withheld from their paycheck . 🔍 Key Points 1️⃣ Who issues it? • Employers send it to both the employee and the IRS. 2️⃣ Who receives it? • All employees (not…
