Hi Guys,
can anyone please tell me if this is the correct approach/order to learn for the Individual taxation module & answering the questions. It's pretty big/ intimidating so If anyone could tell me if this is all I need/what I am missing I would really appreciate it 🙂
1)Components of income:
schedules B-F
wages
alimony received
taxable state/local refunds
IRA
social security
unemployment
pensions and annuities
2) refundable credits:
withholding taxes
earned income credit
american opportunity credit
child tax credit
excess social security paid
3)non-refundable credits:
general bus credit
retirement plan contribution credit
adoption credit
child and dependant care credit
elderly/disabled credit
foreign tax credit
long term unused minimum tax credit
lifetime learning credit
4)adjustments to 1040 (deductibles):
student loan interest
health savings account
IRA
interest withdrawal penalty
moving expenses
alimony paid
self employed health insurance (deduct 100%)
self employed retirement
domestic production activities deduction
1/2 self employment FICA
paid attorney fees – discrimination/whistleblower
5)Schedule A:
charitable contributions
other misc expenses
misc in excess of 2% AGI
medical
interest
theft casualty
6) misc 2%:
bus gifts
educational expenses
bus use of home
employment agency fees
uniforms
bus exp – unreimbursed
expenses of investors
subscriptions to professional journals
tax prep fees
7) exemptions:
no joint returns
US citizen
household member or related
existed during the year
support of more than 50%
taxable income less than threshold
8) Taxes:
real estate
income
personal property
sales
9) interest:
home mortgage
investment
.