Jacksonville CPA | Unemployment Compensation
Okay, welcome back. I’m branded mcelroy. If you have a Jacksonville CPA that is not giving you the love and attention that you need, give me a call when Neva is a Jacksonville based tax and accounting from tax, accounting and consulting firm that with the desire to help our clients achieve their goals. We’re talking about the layout of the tax form today and just going through the, through written line by line. So the previous segment, we covered everything down to the past through line. What is the pass through line? So it’s basically s-corporation income partnership income,
um, and here’s, here’s outreached and line, 17 rental real estate, royalties, partnerships, s corporations, trusts, etc. Attached schedule e. OkAy. If you have a separate entity, a path that flows through income to your you personally, then this is the line that the income is reported on. The income reported on this line is not subject to self employment tax with the exception of a trader business partnership. Okay? So
next time line is farm income or loss. okay. And the next lIne after that is unemployment compensation. Okay? So a few jacksonville cpa is not explaining things to you like you think like, you know, um, and for you to be able to understand the gift mineva call and the next line in the income section after that is your social security benefits.
Okay? And you’ll only be taxed up to 85 percent of your social security. Okay? the next slide is other income that encompasses anything else that is not listed in the above lines. Okay? So that rounds out the income section of the tax return. Your income is listed first, okay. After your name and your social security number and your dependence names and social security numbers. And then we have the adjusted gross income if he ever someone say an above the line deduction. Okay. The line is basically the separating line between page one and page two. Um, so your adjusted gross income, any, all these deductions are above the line deductions and their direct offset to taxable income. So educator expenses, you’re allowed to $250 if you’re a teacher for supplies and things that you’ve made purchase.
Um, you have certain business expenses of reservist performing artists. And fee basis, government officials. okay. And then health savings account deduction. We talked about this in previous segments. Get a direct deduction for your health savings account. I’m moving expenses. Okay. And then a deductible ppo part of self employment tax. So if you’re paying self employment tax, you get to take part of it as a deduction. I’m the employer portion. The next is your retirement plans for small business, self employed, sep, simple and qualified plans. And then the next is self employed health insurance deduction, which we’ve talked about that in previous segments. So if you’re jacksonville cpa
is not talking about these things and give them a call. Okay. And then you have your penalty on early withdrawal of savings. If you have some kind of cd or something and the bank charges you a penalty, you can take that deduction. Alimony paid to espouse ira deduction is next. Then student loan interest deduction and then tuition and fees. And that would be for the actual tuition. If you’re not getting an education credit then you would take the tuition and fees deduction. And then the next which is going away this year and 2018 is domestic production activities deduction and that is for companies that
manufacturer or related to manufacturing or construction of real property in the United States, take that deduction. Okay. And That sums up all of the adjusted gross income items. And so once you, you come to you, you have all your income listed and then you take your apple deductions, you get to your adjusted gross income or your agi. So fewer jacksonville cpa is not explaining things like he should then give them a call. So then you take your income, subtract off your adjusted gross income. I’m sorry, subtract off, you’re above the line deductions and you have your adjusted gross income. Okay? Then you actually moved to page two of the tax return. Okay. And then you have get an itemized or your standard deduction. Okay. Which were 2018. The standard deduction for a married couple, it’s going to be $24,000. So you would only itemize if you have more deductions in this standard. So what are itemized deductions? Property taxes to a certain extent, medical expenses and insurances, um, mortgage interest, real estate taxes, charitable contributions, and you have other miscellaneous deductions, unreimbursed, employee expenses.
I’m just like, there’s a whole slew of deduction, safe deposit box, tax preparer fees, and the other miscellaneous deductions, they’re limited. You can only take the amount that exceeds two and a half percent of your adjusted gross income. So if all of these deductions do not add up to more than the standard deduction, then you cannot itemize, I guess you could but would not be in your best interest to itemize. So have you have a jacksonville cpa that’s not keeping your best interest at heart, then give her navel call. Okay, so
and moving on, delvin line used to be that you could take a $4,050 per person claimed. So for you, your spouse and each one of your children, but now they’ve done away with the personal exemption since they increased the standard deduction. Okay? And then once you subtract out the standard deduction or itemized deduction, that leaves you with your taxable income. Okay? And then your tax has figured based on a table off of that number. So if you’re making $50,000 a year, your taxable income is, you know, if you’re, you don’t have significant our itemized deductions for your $6,000 a year employee, your taxable income is going to be $26,000. Okay? So then the tax firm that is figured on a tax table, um, in a progressive fashion. So the first 10,000 gets taxed at 10 percent and then it moves up to 12 and so on and so on. And that is all for today and we will see you next time.