Gross Income

Question 1

Basic Individual Income Tax Formula

Answer 1

Gross Income
-Adjustments (Above the Line) For AGI
=AGI
-Itemized or Standard Deduction
-QBI Deduction
=Taxable Income
xTax Rate
=Gross Tax Liability
-Credits
=Tax Liability or Refund

Question 2

Where is taxable interest reported?

Answer 2

Schedule B if the amount is over $1,500.

Question 3

What form does interest paying entities give to taxpayers listing their interest paid?

Answer 3

1099-INT

Question 4

Where are ordinary dividends and qualified dividends reported?

Answer 4

Schedule B if amount is over $1,500.

Question 5

What form do dividend paying entities give to taxpayers listing their dividends paid?

Answer 5

1099-DIV

Question 6

What form do payers state and local tax refunds, credits, or offsets send to taxpayers?

Answer 6

1099-G

Question 7

When is a state and local tax refund never federally taxable?

Answer 7

If the taxpayer did not itemize deductions or did not deduct state and local taxes.

Question 8

What gets reported on Schedule C?

Answer 8

Income resulting from Taxpayers operating a business as a sole proprietorship or as a disregarded entity.

Question 9

Where do Taxpayers report income/loss from real estate, royalties, partnerships, S corps, estates, and trusts?

Answer 9

Schedule E

Question 10

Are unemployment benefits taxable gross income?

Answer 10

Yes

Question 11

What form do payers of Unemployment Benefits send to taxpayers?

Answer 11

1099-G