W-2 → Wages, salaries, tips

💼US Payroll – Payroll Tax Deposits :- 1️⃣ Federal Taxes (IRS): *Who: Internal Revenue Service (IRS) *What: Federal income tax withholding, Social Security, Medicare, FUTA *How: Electronically via EFTPS (Electronic Federal Tax Payment System) or through payroll service 2️⃣ State Taxes (State Agencies): *Who: Your state’s Department of Revenue or equivalent *What: State income tax…

Both forms are used to report non-wage payments, but they serve different purposes after the IRS split reporting in 2020. 🔍 Form 1099-MISC – Miscellaneous Information 🔍 Form 1099-NEC – Nonemployee Compensation 📊 Form 1099-MISC vs. Form 1099-NEC – Key Differences 🔹 Purpose *1099-MISC → Reports miscellaneous payments (rent, royalties, prizes, legal settlements, etc.) *1099-NEC…

Topic: 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…

Many high-income taxpayers don’t realize that ignoring the Alternative Minimum Tax (AMT) can significantly increase their tax liability. Here’s a real-world style example: *Without planning, the taxpayer owed $85,424 under AMT. *With proper planning, liability was reduced to $69,850 — a tax savings of $15,574. This case study breaks down: * Regular Tax Calculation *…

🧾 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…