Form 6251: Alternative Minimum Tax for Individuals How does alternative minimum tax work? The Alternative Minimum Tax (AMT) is a federal tax imposed on certain taxpayers who have high income or claim certain tax preferences. The AMT is in addition to the regular income tax. The AMT is calculated using a different set of rules … Read more
Form 4797: Sales of Business Property What is the difference between Schedule D and form 4797? Schedule D is a tax form used to report capital gains and losses from the sale of assets, such as stocks, bonds, and real estate. Form 4797 is used to report the sale of business property, such as machinery … Read more
A payroll tax is a tax levied on employers in order to fund specific government programs. Payroll taxes are usually calculated as a percentage of an employee’s wages. The most common payroll tax is the Social Security tax, which is used to fund the Social Security program. How do I categorize payroll taxes in Quickbooks? … Read more
The term “tax deferred” refers to income that is not subject to current income tax. This means that the tax on the income is deferred until some future date. There are many different types of tax-deferred income, but the most common are retirement accounts such as 401(k)s and IRAs. How many types of deferred tax … Read more
A full-time student is someone who is enrolled in an educational institution on a full-time basis. This typically means that the student is taking a minimum of 12 credit hours per semester. In order to be considered a full-time student for tax purposes, you must be enrolled in a program that leads to a degree, … Read more
The Inclusion Amount Definition is the portion of an individual’s income that is subject to tax. The inclusion amount is determined by subtracting the standard deduction and personal exemption from the individual’s gross income. How do I check my income tax AIS? There are two ways to check your AIS: 1. Online: Visit the e-Filing … Read more
“Recognized gain” is a term used in the context of income taxes. It refers to the amount of gain that is recognized for tax purposes. The recognition of gain can happen either when the gain is realized (i.e., when the asset is sold for a higher price than its original purchase price) or when the … Read more
The annualized income installment method is a way of paying your taxes that is based on your expected income for the year. This method allows you to make smaller payments throughout the year, rather than one large payment at tax time. The annualized income installment method is a good option for taxpayers who have a … Read more
How to Claim a Tax Refund Owed to a Deceased Person What happens when a deceased person gets a tax refund? If a deceased person gets a tax refund, it will go to the estate. The executor of the estate will be responsible for distributing the refund among the heirs. Does form 1310 have to … Read more
Form 8379: Allocation for Injured Spouse How long do I have to file an injured spouse claim? If you are married and filed a joint return, you and your spouse are both responsible for the tax and any interest or penalties due on the return. This is called joint and several liability. If you file … Read more
