R1 M2 Gross Income Part I Flashcards
Where are wages reported in your W2 Form?
You would take W2 Form in box 1 and enter it in Form 1040.
Terry’s 17 year old who worked in a restaurant. Would his income be added to his parent Form 1040 as a dependent?
No his form would not be used in his parent 1040 Form
What form does interest income come from?
Form 1099 INT and consolidated Form 1099
In form 1099 INT What boxes do you use?
BOX 1 is included and Box 3 is also used it will be exempt if the EE saving bonds was used for education purposes.
Is state and local interest taxable?
No, unless they are itemized.
In Form 1099 consolidated what Boxes do you use for taxable interest?
BOX 1
Taxable Dividend Income in the consolidated Form 1099 what would you use?
Qualified Dividend income or ordinary dividend in 1 a . The qualified dividend is part of ordinary dividend.
What form do you use for Gambling? Is it taxable?
Form w2(g) . Yes
Do you deduct Gambling winning with losses?
Yes, if you used an itemized deduction. If not you would just use the Gambling wining in Box 1.
Interest received on state and local government bond of $500.00. Are they exempt from federal Tax?
Yes. Municipal bond interest is exempt from federal tax.