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19 Cards in this Set
- Front
- Back
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How does the IRS view income |
All income is taxable unless specifically excluded |
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What is adjusted gross income |
Income less certain specific deductions and adjustments |
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How do you calculate taxable income |
Subtracting additional deductions either standard or itemized and exemptions from AGI |
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How do you calculate gross income |
Income
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What are sources of earned income |
Wages salary tips fees self-employment income |
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What are examples of unearned income. |
Interest dividends retirement income alimony and disability benefits |
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Income versus unearned income and FICA |
Earned income is subject to it and unearned income is not |
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What is the constructive receipt of income |
When it becomes available. |
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What are the two classifications of workers |
Employees or independent contractors |
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What is the form clients or customers show income paid |
1099 misc |
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If you get a 1099 miscellaneous where is that reported |
On schedule C |
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What is self-employment tax |
15.3% to cover SSI and Medicare. |
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What is the value of the excess earnings for medicare only |
$113,700. Then 2.9% for Medicare. |
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Can married couples offset each other's in come from self-employment |
No |
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If employee fails to withhold Social Security or Medicare from an employee what must he file |
8919 |
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What is the form if an employee overpay Social Security and Medicare |
Firm 843 |
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What do supplemental wages include |
Bonuses commissions prizes Severance pay back pay holiday pay Payment for nondeductible moving expenses |
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What if an employee receives property for services performed |
He must recognize the fair market value of the property is taxable income |
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How do you report tip income |
If it's more than $20 per month |
