I just completed all of the SIMS related to Form 1040 and missed the questions for all of these little details. Oy vey. The sad thing is that I know most of this stuff, but when I'm staring at a SIM I just get overwhelmed.
Form 1040 Notes
Earned Income does not equal wages (salaries, tips, life insurance premium income, fringe benefits from employers, etc)
Self Employment income is “Income from Business”
Gambling Winnings are included in “Other Income” (Do not subtract gambling losses from this amount!)
1/2 of self-employment tax = self employment income * .9235 * .153 * .50
Child Tax Credit can be up to $1,000, reduced based on AGI limitations
With abandoned spouse > 6 months, use head of household
For CDs–do not include interest earned/accrued, only interest paid
Ordinary dividends = qualified dividends, do not include stock dividends
Do not claim amounts for dependents unless you also claim their income. Better for them to file their own return at the lower taxable rate
Add employer paid life insurance > $50K to wages (.96 for every $1,000 over)
Limit capital losses to $3,000 to offset ordinary income
“Other Income” includes stock dividends IF the TP had the choice between stock or cash
“Other Income” includes unemployment compensation
For Simple plan contributions–include payments made from the company and the individual
Taxable interest–exclude amount paid for accrued interest
Include IRA withdrawals, even if for tuition, in income IF the IRA contributions were deductible
Tax deductible IRA Contributions are only allowed IF AGI <60K
Student Loan interest is deductible up to $2,500, but is phased out for AGU between $65K and $80K
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