Taxes For Dummies: 2022 Edition

https://mhco.ca/gb14vfxirk Cover Title Page Copyright Table of Contents Introduction About This Book Foolish Assumptions Icons Used in This Book Beyond the Book Where to Go from Here Part 1: Getting Ready to File Chapter 1: Understanding the U.S. Tax System Figuring Out the U.S. Tax System Understanding Your Income Tax Rates Noting the Forever Changing Tax Laws Chapter 2: Tax Return Preparation Options and Tools Going it Alone: Preparing Your Own Return Taking Advantage of IRS Publications Perusing Tax-Preparation and Advice Guides Using Software Accessing Internet Tax Resources Hiring Help Finding Tax Preparers and Advisors Chapter 3: Getting and Staying Organized Maintaining the Burden of Proof Keeping Good Records Reconstructing Missing Tax Records Understanding the Cohan Rule Chapter 4: What Kind of Taxpayer Are You? What Rendition of 1040 Shall We Play? Choosing a Filing Status Filing for Children and Other Dependents Defining Who Is a Qualifying Child Filing a Return for a Deceased Taxpayer Must I File? A Final Bit of Advice Part 2: Tackling the Main Forms Chapter 5: All The Form 1040s: Income Stuff Starting at the Very Beginning: The Top of 1040 Lines 1-9: Income Chapter 6: Form 1040, Schedule 1, Part I: Additional Income Schedule 1, Part I, Line 1: Taxable Refunds, Credits, or Offsets Schedule 1, Part I, Lines 2a and 2b: Alimony Received (by You) Schedule 1, Part I, Line 3: Business Income (or Loss) Schedule 1, Part I, Line 4: Other Gains (or Losses) Schedule 1, Part I, Line 5: Rental Real Estate, Partnerships, and More Schedule 1, Part I, Line 6: Farm Income (or Loss) Schedule 1, Part I, Line 7: Unemployment Compensation Schedule 1, Part I, Line 8: Other Income Schedule 1, Part I, Line 9: Total Other Income Schedule 1, Part I, Line 10: Combine Lines 1 through 7 and 9 Chapter 7: Form 1040, Schedule 1, Part II: Adjustments to Income Stuff Figuring Out Your Adjusted Gross Income (AGI) Form 1040, Line 11: Adjusted Gross Income Chapter 8: Form 1040, Schedule 2: Additional Taxes Schedule 2, Part I: Tax Schedule 2, Part II: Other Taxes Bringing Us to Line 21 Chapter 9: Form 1040, Schedule 3: Adding Up Your Credits and Payments Schedule 3, Part I: Nonrefundable Credits Schedule 3, Part II: Other Payments and Refundable Credits Chapter 10: Finishing Up the 1040 Arriving at Taxable Income Calculating Your Tax Liability Calculating Your Payments and Refundable Credits Refund or Amount You Owe Finishing Up Part 3: Filling Out Schedules and Other Forms Chapter 11: Itemized Deductions: Schedule A Claiming the Standard Deduction Locating Your Itemized Deductions Lines 1–4: Medical and Dental Costs Lines 5–7: Taxes You Paid Lines 8–10: Interest You Paid Lines 11–14: Gifts to Charity Line 15: Casualty and Theft Losses (Form 4684) Line 16: Other Itemized Deductions Line 17: Total Itemized Deductions Line 18: Check the Box Chapter 12: Interest and Dividend Income: Form 1040, Schedule B Part I, Lines 1–4: Interest Income Part II, Lines 5–6: Dividend Income Part III, Lines 7–8: Foreign Accounts and Trusts Chapter 13: Business Tax Schedules: C and F Schedule C Basic Information (A–E) Accounting Method Stuff (Boxes F–H) Information Returns (Boxes I and J) Part I, Lines 1–7: Income Part II, Lines 8–27b: Expenses Operating Loss Schedule F: Profit or Loss from Farming Chapter 14: Capital Gains and Losses: Schedule D and Form 8949 Claiming Capital Sales: Collectibles and Real Estate Noting the Different Parts of Schedule D Form 8949: Sales and other dispositions of capital assets Calculating Your Adjusted Basis Part I, Lines 1–7: Short-Term Capital Gains and Losses Part II, Lines 8–15: Long-Term Capital Gains and Losses Part III, Lines 16-22: Summary of Parts I and II Using Schedule D for Home Sales Using Form 8949 and Schedule D for Other Stock Matters Reporting Nonbusiness Bad Debts Checking On Cryptocurrency Chapter 15: Supplemental Income and Loss: Schedule E Part I: Income or Loss from Rental Real Estate and Royalties Part II: Income or Loss from Partnerships and S Corporations Part III: Income or Loss from Estates and Trusts Part IV: Income or Loss from Real Estate Mortgage Investment Conduits Part V: Summary Chapter 16: Giving Credits Where Credits Are Due Child- and Dependent-Care Expenses: Form 2441 (1040) Credit for the Elderly or the Disabled: Schedule R (1040) Education Credits (Form 8863) Child Tax Credit and Credit for Other Dependents Retirement Savings Contributions Credit (Form 8880) Residential Energy Credits (Form 5695) Adoption Credit (Form 8839) Motor Vehicle Credits (Form 8910 and Form 8936) Earned Income Credit (EIC) Chapter 17: Other Schedules and Forms to File Estimated Tax for Individuals (Form 1040-ES) Moving Expenses (Form 3903) Nondeductible IRAs (Form 8606) Forms 8615 and 8814, the Kiddie Tax Form 8829, Expenses for Business Use of Your Home Form W-4, Employee Withholding Household Employment Taxes: Schedule H Schedule SE: Self-Employment Tax Form Part 4: Audits and Errors: Dealing with the IRS Chapter 18: Dreaded Envelopes: IRS Notices, Assessments, and Audits Understanding the IRS Notice Process Assessing Assessment Notices Requesting a Collection Due Process Hearing Handling Non-Assessment Notices What You Must Know about Audits Surviving the Four Types of Audits Questioning Repetitive Audits Getting Ready for an Audit Winning Your Audit Understanding the Statute of Limitations on Audits Chapter 19: Fixing Mistakes the IRS Makes Seeing the Types of Mistakes the IRS Makes Corresponding with the IRS: The Basics Sending a Simple Response to a Balance Due Notice Sending Generic Responses to Generic Notices Getting Attention When the IRS Appears to Be Ignoring You Finding Your Refund When It Doesn’t Find You Chapter 20: Fixing Your Own Mistakes Amending a Return Solving When You Can’t Pay Your Taxes Abating a Penalty Abating Interest Protecting Yourself with Innocent Spouse Relief The Taxpayer Bill of Rights: In the Beginning The Taxpayer Bill of Rights: Parts 2 and 3 Part 5: Year-Round Tax Planning Chapter 21: Tax-Wise Personal Finance Decisions Including Taxes in Your Financial Planning Taxing Mistakes Comprehending the Causes of Bad Tax Decisions Chapter 22: Trimming Taxes with Retirement Accounts Identifying Retirement Account Benefits Naming the Types of Retirement Accounts Taxing Retirement Account Decisions Chapter 23: Small-Business Tax Planning Organizing Your Business Accounting Minimizing Your Small-Business Taxes Deciding to Incorporate or Not to Incorporate Investing in Someone Else’s Business Buying or Selling a Business Chapter 24: Your Investments and Taxes Tax-Reducing Investment Techniques Tax-Favored Investments to Avoid Analyzing Annuities Selling Decisions Chapter 25: Real Estate and Taxes Surveying Real Estate Tax Breaks Purchasing Your Humble Home Making Tax-Wise Mortgage Decisions Selling Your House Investing in Real Estate Chapter 26: Children and Taxes Bringing Up Baby Navigating Education Tax Breaks and Pitfalls Being Aware of Taxes on Your Kids’ Investments Chapter 27: Estate Planning Figuring Whether You May Owe Estate Taxes Reducing Expected Estate Taxes Part 6: The Part of Tens Chapter 28: Ten Tips for Reducing Your Chances of Being Audited Double-Check Your Return for Accuracy Declare All Your Income Don’t Itemize Earn Less Money Don’t Cheat and Put Down Your Protest Sign Stay Away from Back-Street Refund Mills Be Careful with Hobby Losses Don’t Be a Nonfiler Don’t Cut Corners if You’re Self-Employed Carry a Rabbit’s Foot Chapter 29: Ten Overlooked Opportunities to Trim Your Taxes Make Your Savings Work for You Invest in Wealth-Building Assets Fund “Tax-Reduction” Accounts Make Use of a “Back-Door” Roth IRA Work Overseas Check Whether You Can Itemize Trade Consumer Debt for Mortgage Debt Consider Charitable Contributions and Expenses Scour for Self-Employment Expenses Read This Book, Use Tax Software, Hire a Tax Advisor Chapter 30: Ten (Plus One) Tax Tips for Military Families Some Military Wages May Be Tax-Exempt Rule Adjustments to Home Sales Tax Benefits for Your Family if You’re Killed in Action Deadlines Extended During Combat and Qualifying Service Income Tax Payment Deferment Due to Military Service Travel Expense Deductions for National Guard and Reserves Members No Early Retirement Distribution Penalty for Called Reservists No Education Account Distribution Penalty for Military Academy Students Military Base Realignment and Closure Benefits Are Excludable from Income State Income Tax Flexibility for Spouses Deductibility of Some Expenses When Returning to Civilian Life Chapter 31: Ten Interview Questions for Tax Advisors What Tax Services Do You Offer? Do You Have Areas that You Focus On? What Other Services Do You Offer? Who Will Prepare My Return? How Aggressive or Conservative Are You Regarding the Tax Law? What’s Your Experience with Audits? How Does Your Fee Structure Work? What Qualifies You to Be a Tax Advisor? Do You Carry Liability Insurance? Can You Provide References of Clients Similar to Me? Appendix: Glossary A B C D E F G H I J K L M N O P Q R S T U W Z Index About the Authors Advertisement Page Connect with Dummies End User License Agreement