Jacksonville CPA | Advantageous For A Taxpayer
So hello everyone, welcome to today’s segment. We’re going to talk about the way a tax return works. Okay? So many people don’t understand this and they get confused. So let’s talk about it. So there are several different ways to file the tax return. And so Jacksonville CPA, if you are married, you have a first. Let’s, let’s back up. Let’s go over all the filing statuses. Okay. So you have single head of household married filing, separate or married filing joint. Thomas stop that. Thomas up that and qualifying widower or widow. So a single status is just that. So a single person with no dependents, no children to claim, you know that a spouse, a head of household, a lot of people get this confused.
No, I’ve seen people say, well I’m the head of my house. Um, but yeah, if you’re the only one in it then you don’t need, you can’t fall head of household. Okay. Head of household is a little bit more advantageous for a taxpayer, Jacksonville, CPA, Tom. So head of household to file for head of household, you must have a qualifying child. Okay. And qualifying dependent to claim. Okay. Because then you would be considered the head of household, so like a single parent, too few children as dependents. Definitely would qualify as head of household. Okay. Jackson will CPA, so
married and a lot of people get this confused too. So if you were married, you’re required to use one of two filing statuses. Married, filing joint or married filing. Separate. I’ve see a lot of people think, well you know, I’ll just file head of household and my wife will just follow up at a head of household, you know, she’ll use a couple of kids. I’ll use a couple of kids. It’s not the way to do it. Okay. So you have to use if you’re married, either married, filing joint or married filing. Separate status. Okay. So the next is qualifying widow or widower. So if your spouse passes away and let’s just say January, February, you can still file and what’s essentially a married filing joint, but they just call it.
Oh actually I take that back. So if your spouse dies during the year, you can still. If you were married at any point during the year, you can still, you can still claim qualifying widow or widower. I’m sorry, you can still claim married filing joint. So if your Jacksonville CPA is not helping you out with this, then give me a call. Okay, so the qualifying widow or widower is if you have dependents that, uh, you know, your spouse passes away and you have dependents that you’re keeping track that you have to care for them, then you have a, an additional two years worth of filing as a qualifying widow or widower. Okay? High risk gives you that provision. Okay. So let’s talk about the difference between married filing jointly and married filing separately. Okay? Um, if you have a Jacksonville CPA that is not walking through these things with you, then just give me a call.
So married filing jointly, nine times out of 10 is the best way to go. Should we have, there are many credit center not available. He filed separately. Um, and you know, there’s, you have to jump through hoops as it comes to itemized deductions or standard deductions and things like that. So, uh, Ios, if someone is, is concerned they married, filing joint is not the best option, then I always tell them I will run a comparison on their file and a simple comparison, we’ll tag everything and their tax return wished baskets earns what gets what’s deduction, and then run a simple comparison to see if married filing joint or married filing separate is most advantageous way to file. Okay?
So let’s move on down after you have your, your name, let’s just give this example of a married person with two kids. So you name your name and your spouse’s name and social security numbers and addresses are listed on the return along with your dependence names. Okay? And then the next line in our next section down is your wages. Okay? So if you work job w two jobs, your wages, um, I believe that’s line seven. Okay. And then as we move on down, you have interest and dividend income are reported the next few lines. So if you’re jack, CPA doesn’t explain how this works and give him an eva call, have your wages or your interest in dividends, investment income then
okay, so then the, the section of tax return that I’m talking about is a, the income section, okay? That’s what it starts out, starts out as wages, then your interest in dividends, okay. And then the next you’ll have some people have taxable refunds or from state refunds and things like that. Um, that’s listed next. Then you have your alimony received. Alimony is a former spouse, is paying you in an agreed upon divorce settlement and a few Jacksonville CPA if you are frustrated with your Jackson CPA and give them a call and we will help you out. Okay? And then the next line, line 12 is your business income. Okay?
So business income, right? Um, many people get this confused with, you know, if they’re an s corp, I think, oh that’s my business income comes into this. I know this mine, mine twelfth is a for a schedule C filer or a self employed person that is not operating with a separate entity like an s corporation or some type of pass through entity. Okay? Next line is your capital gain or loss, okay? Your stock sales or maybe a, a house that she purchased for investment and you’re selling. Okay? And then you have your other gains and losses. And then the next line is your IRA distributions, okay?
Um, and next line after that is your, your pensions and annuities. So you know, if you have a 401k or annuity or some kind of retirement plan near taking money out of, that’s going to show up on this line here. Okay? And then the next line is the pass through. Okay?