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How to claim Tax-Free Educational Assistance and Refunds of Qualified Expenses
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Tax-free educational assistance includes a tax-free scholarship, Pell Grant, or tax-free employer-provided educational assistance. You must reduce the total of your qualified expenses by any tax-free educational assistance and by any refunds of qualified expenses. If the refund or tax-free assista...
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Excess Social Security and RRTA Tax Withheld |
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Most employers must withhold social security tax from your wages. Certain government employers (some federal, state, and local governments) do not have to withhold social security tax. If you work for a railroad employer, your employer must withhold Tier 1 railroad retirement (RRTA) tax and Tier 2...
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Form 5329 Exceptions
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Distributions from Qualified Tuition Programs (QTP's) or Coverdell Education Savings Accounts (ESA's) made because of attendance by the beneficiary at a U.S. military academy generally are not subject to the 10% additional tax. The tax on early distributions does not apply to the distributions des...
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When taxpayers owe the IRS |
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You can e-file at any time during the season. However, sending the payment for a balance due before April 15 is the taxpayer's responsibility. If the taxpayer owes, you can print then the IRS payment voucher/Form 1040-V from the return to mail in with payment to the appropriate address for their s...
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Social Security & Medicare Tax on Unreported Tip Income
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If you receive tips of $20 or more in any month and you did not report the full amount to your employer, you must pay the social security and Medicare or railroad retirement (RRTA) tax on the unreported tips. You must also pay this tax if your Form(s) W-2 shows allocated tips that you are including...
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How do I claim a distribution from a foreign trust? |
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Foreign-Source Income - You must report unearned income, such as interest, dividends, and pensions, from sources outside the United States unless exempt by law or a tax treaty. You must also report earned income, such as wages and tips, from sources outside the United States. If you worked abroad,...
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Form 8828 - Recapture of Federal Mortgage Subsidy
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Purpose of Form Use this form to figure and report the recapture tax on the mortgage subsidy if you sold or otherwise disposed of your federally subsidized home. Federal Mortgage Subsidy You have a federal mortgage subsidy if you received either of the following benefits: 1. A mortgage loan (in...
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Income Averaging for Farmers and Fisherman |
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Use Schedule J (Form 1040) to elect to figure your income tax by averaging, over the previous 3 years (base years), all or part of your 2014 taxable income from your trade or business of farming or fishing. This election may give you a lower tax if your 2014 income from farming or fishing is high a...
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Elected Farm Income and Definitions
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To figure your elected farm income, first figure your taxable income from farm-ing or fishing. This includes all income, gains, losses, and deductions attributable to your farming or fishing business. If you conduct both farming and fishing businesses, you must figure your elected farm income by co...
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Form 4970 - Tax on Accumulation Distribution of Trusts |
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Purpose of Form A beneficiary of certain domestic trusts (see Who Must File below) uses Form 4970 to figure the partial tax on accumulation distributions under section 667. The fiduciary notifies the beneficiary of an "accumulation distribution" by completing Part IV of Schedule J (Form 1041). If...
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Repayment of First-Time Home Buyer Credit
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Repayment of the Credit. If you are repaying the credit with your tax return, you are required to file form 5405 only if: You must file Form 5405 if you meet either of the following conditions. You disposed of your home or you ceased using the home as your main home in 2013. (Note. This cond...
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