Income Tax Fundamentals Ch 1

Front 1

5 basic taxable/reporting entities

Back 1

1. individuals
2. corporations
3. partnerships
4. estates
5. trusts

Front 2

Schedule A

Back 2

Itemized deductions

Front 3

Schedule B

Back 3

Interest and dividend income

Front 4

Schedule C

Back 4

Profit or loss from business or profession

i.e. sole proprietorship

Front 5

Schedule D

Back 5

Capital gains and losses

i.e. partnership

Front 6

Schedule E

Back 6

Supplemental (rent and royalty) income

Front 7

Schedule F

Back 7

Farm and ranch income

Front 8

Form 1041

Back 8

Fudiciary (estates and trust) tax return

Front 9

Corporation

Back 9

Form 1120A (short form)
Form 1120 (long form)

Front 10

Partnership

Back 10

Form 1065
Schedule K-1

Front 11

Tax formula for individuals

Back 11

Gross Income -
Deduction for Adjusted Gross Income =
Adjusted Gross Income
- Greater of Itemized Deducted or the Standard Deduction
- Exemption
= Taxable Income
x Tax Rate
= Gross Tax Liability
- Credits and Prepayments
= Tax Due or Refund

Front 12

Gross Income

Back 12

all income, unless the tax law provides for a specific exclusion

Front 13

Deductions for Adjusted Gross Income

Back 13

1. trade or business expenses
2. certain reimbursed employee business expenses paid under an accountable plan
3. alimony payments
4. moving expenses
5. certain educator expenses
6. student loan interest
7. tuition and fee deduction
8. penalty on early withdrawal from saving
9. contributions to qualified retirement plans

Front 14

Itemized Deductions

Back 14

personal items that COngress has allowed as deductions