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| included in gross income Schedule B |
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Term
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Include in gross income
Schedule B |
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| Taxable refunds of state and local taxes |
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Definition
| include in gross income if a benefit was received in the prior year |
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Definition
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include in gross income
Schedule C |
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Include in gross income
deductible to loss + $3,000 for individuals; carryforward indefinitely
deductible only to loss for corporations |
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included in gross income
Form 4797 |
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Definition
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| Pension benefits received |
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Definition
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Term
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Definition
exclude from gross income to extent that they are a return of capital; additional payments are included in gross income
Excludable portion = investment in annuity/expected number of payments |
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Term
| Rents, royalties, partnerships, S-Corps, trusts, etc |
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Definition
included in gross income
Schedule E
Includes distributive income (that has not actually been distributed yet);
Includes nonrefundable deposits, premiums, and lease breaking payments taxable in period received |
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included in gross income
Schedule F |
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Term
| Unemployment compensation |
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| generally excluded from gross income unless you are a high-income tax payer |
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Term
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above-the-line/adjustment for gross income;
May contribute lesser of earned income or $5,000 (+$1,000 over 50 yrs) |
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Term
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Definition
| above-the-line/adjustment for gross income |
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Term
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Definition
| above-the-line/adjustment for gross income |
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Definition
above-the-line/adjustment for gross income;
new place must be 50 miles from old place;
person must be employed at new place for 39 weeks of 12 mos following move;
allowed:
-cost of moving goods
-cost of traveling and lodging
Disallowed:
-house hunting trips
-temporary living expenses
-expenses in selling old residence, buying new residence, breaking a lease
-meal expenses |
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Term
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Definition
| above-the-line/adjustment for gross income |
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Term
| self-employed health insurance |
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Definition
above-the-line/adjustment for gross income;
taxpayer may deduct for taxpayer, spouse, dependents but cannot be greater than net self-employment earning |
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Term
| Self-employed SEP, SIMPLE, and qualified plans |
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Definition
| above-the-line/adjustment for gross income |
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Term
| penalty for early withdrawal of savings |
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Definition
| above-the-line/adjustment for gross income; interest is included in gross income |
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Term
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Definition
| above-the-line/adjustment for gross income |
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Term
| Medical and dental expenses |
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Definition
itemized on Schedule A
subject to 7.5% floor |
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Term
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Definition
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Term
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itemized on schedule A;
-mortgages for home acquisition: interest on $1,000,000
-home equity indebtedness: interest on up to $100,000
-investment interest expense: to purchase or carry an investment
** Personal and consumer expense is NOT DEDUCTIBLE |
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Term
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Definition
Itemized on schedule A;
cannot exceed 50% AGI or 30% for non-50% organizations (war veterans organizations or fraternal order) |
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Term
| Casualty and theft losses |
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Definition
itemized on schedule A;
only to extent that they exceed gains;
10% AGI floor
$100 floor per event
reduced by amount recovered by insurance |
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Term
| unreimbursed employee expenses |
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Definition
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Term
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Definition
| tax credit - nonrefundable (20-30% of eligible expenses up to $3,000) |
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Term
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Definition
| tax credit - nonrefundable (15% of eligibile income if 65+ or permanently disabled) |
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Term
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Definition
| tax credit - nonrefundable (US taxes x (taxable income from foreign sources/total taxable income) |
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Term
| Education, child adoption |
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Definition
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Term
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Definition
excluded from gross income - only face amount of policy
If paid in installments, interest portion is includable |
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Term
| Gifts, bequests, inheritances |
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Definition
| excluded from gross income |
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Term
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Definition
excluded from gross income IF:
-recipient had no action in winning
-recipient does not have to render future additional services
-award is designated to govt or charity from recipient's request |
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Term
| Scholarships and fellowships |
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Definition
excluded from gross income as long as they are used to pay for tuition, fees, books, supplies and equipment
Payment for teaching, research, other services are included in gross income |
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Term
| Gain on sale of principal residence |
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Definition
| excluded from gross income |
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Term
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Definition
excluded from gross income
-workers' comp
-damages received
-accident and health insurance claims
-disability benefits |
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Term
| Interest on tax-exempt government obligations |
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Definition
| excluded form gross income |
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Term
| Property settlements to (former) spouse |
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Definition
excluded from gross income
Must be incident to divorce or within one year of marriage ending |
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Term
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Definition
| excluded from gross income |
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Term
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Definition
excluded from gross income if:
-no additional cost service
-qualified employee discout
-working condition fringe benefit
-minimal fringe benefit |
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Term
| Group term life insurance |
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Definition
| excluded from gross income if paid by the employer, up to $50,000 of benefits |
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Term
| Accident and health plans |
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Definition
Premiums paid by employer are excluded from gross income as long as they:
compensate for loss of earnings due to personal injury or illness or
reimburse medical care expenses or
for permanent injury or loss of bodily function |
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Term
| Dependent care services from employer |
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Definition
| excluded from income up to $5,000/yr |
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Term
| Flexible spending account |
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Definition
employer contributions are excluded from gross income
Qualified withdrawals are excluded from gross income (limited to prescriptions) |
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Term
| Meals or lodging provided by employer |
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Definition
| excluded from gross income if provided for the convenience of the employer or on the employer's premises |
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Term
| educational assistance programs |
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Definition
| excluded from gross income for payments up to $5,250/yr |
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Term
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Definition
| excluded from gross income |
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Term
| qualified adoption expenses |
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Definition
| excluded from gross income |
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Term
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Definition
| excluded from gross income up to $230/mo |
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Term
| Retirement planning services provided by employer |
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Definition
| excluded from gross income |
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Term
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Definition
| exclude retirement benefits from gross income for both defined benefit and defined contribution |
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Term
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Definition
| exclude from gross income if used to finance higher education costs for taxpayer, spouse, dependents |
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Term
| Survivor annuity of a public safety officer killed on duty |
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Definition
| excluded from gross income |
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Term
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Definition
| excluded from gross income |
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Term
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Definition
included in gross income;
deductible from gross income if surrendered to employer |
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Term
| Reimbursed employee expenses |
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Definition
| above-the-line/adjustment for gross income if included in gross income; otherwise, not included in income |
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Term
| Net self-employment income |
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Definition
| included in gross income (Schedule C) |
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Term
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Definition
| itemized deduction (Schedule A) but only to the extent of gambling winnings |
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Term
| Income from discharge of indebtedness |
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Definition
| included in gross income UNLESS debt is discharged due to insolvency |
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Term
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Definition
may only be deducted to the extent of passive activity income; carry forward indefinitely
Includes all rental activities |
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Definition
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Term
| Roth IRA earning and qualified distributions |
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Definition
Exempt from income tax if:
-made at least 5 years after first contribution
-participant is 59.5
-made for participant's death, disability, or home buying expense |
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Term
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Definition
above-the-line/adjustment for gross income
subject to 2% of AGI floor:
-gambling losses to the extent of gambling winnings |
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Term
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Definition
above-the-line/adjustment for gross income to the extent that they exceed 2% AGI in aggregate:
-home office expenses
-continuing education
-unreimbursed employee expenses
-tax return prep fees
-appraisals to determine casualty losses |
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Term
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Definition
refundable tax credit: -earned income -eligible to work in US -file a joint return
-kid for more than 1/2 the year |
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Term
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Definition
| tax credit - nonrefundable |
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