Taxes For Dummies: 2024 Edition

Title Page
Copyright Page
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
			You can reduce your taxes
			Beyond April 15: What you don’t know can cost you
				The costs of procrastination
				The consequences of poor advice
		Understanding Your Income Tax Rates
			Adding up your total taxes
			Following your marginal income tax rate
				States want in on the income tax action, too
				The second tax system: Alternative Minimum Tax
		Noting the Forever Changing Tax Laws
			The Tax Cuts and Jobs Act of 2017
			The SECURE acts of 2019 and 2022
			Possible upcoming changes
	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
			Internal Revenue Service
			Research
			Tax preparation sites
		Hiring Help
			Deciding whether you really need a preparer
			Unenrolled preparers
			Enrolled agents (EAs)
			Certified public accountants (CPAs)
			Tax attorneys
		Finding Tax Preparers and Advisors
	Chapter 3 Getting and Staying Organized
		Maintaining the Burden of Proof
		Keeping Good Records
			Ensuring a complete and accurate tax return
			Setting up a recordkeeping system
			Deciding when to stash and when to trash
		Reconstructing Missing Tax Records
			Property received by inheritance or gift
				Researching newspaper ads
				Consulting local real estate board and broker records
				Obtaining assessed values
				Using the Consumer Price Index (CPI)
			Securities received by inheritance or gift
			Improvements to a residence
				Obtaining a Certificate of Occupancy
				Getting an estimate
			Casualty losses
			Business records
			Using duplicate account statements
		Understanding the Cohan Rule
	Chapter 4 What Kind of Taxpayer Are You?
		What Rendition of 1040 Shall We Play?
			Form 1040
			Form 1040-SR
			Form 1040-NR
		Choosing a Filing Status
			Single
			Married filing jointly
			Married filing separately
			Head of household
			Qualifying widow(er) with dependent child
			Counting your dependents
			Deciding who is your dependent
				Test 1: Member of your household or relative
				Test 2: Married person
				Test 3: Citizen or resident
				Test 4: Income
				Test 5: Support
			Securing Social Security numbers for dependents
		Filing for Children and Other Dependents
		Defining Who Is a Qualifying Child
			Age test
			Relationship test
			Residency test
			Support test
		Filing a Return for a Deceased Taxpayer
		Must I File?
			When to file
			If you don’t file
			Where to file
			How to file
				Electronic filing
				Filing by mail or other private delivery service
		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
			Choosing your filing status
			Adding your name(s), address, and Social Security number(s)
			Electing to give to the next presidential campaign
			Disclosing digital assets
			Calculating your standard deduction
			Listing your dependents
		Lines 1–9: Income
			Lines 1a–1z
				Line 1a: Total amount from Form(s) W-2, box 1
				What those W-2 boxes mean
				Line 1b: Household employee wages not reported on Form(s) W-2
				Line 1d: Medicaid Waiver Payments not reported on Form(s) W-2
				Line 1g: Wages from Form 8919
				Line 1h: Other earned income
				Line 1i: Nontaxable combat pay election
				Line 1z: Add lines 1a through 1h
			Line 2a: Tax-exempt interest
			Line 2b: Taxable interest income
			Line 3a: Qualified dividends
			Line 3b: Ordinary dividends income
			Lines 4a and 4b: Total IRA distributions
				Form 1099-R, Box 1: Gross distribution (Form 1099-R)
				Form 1099-R, Box 2a: Taxable amount
				Form 1099-R, Box 7: Distribution code
			Distributions before 59½
			Transfers pursuant to divorce
			Inherited IRAs
			Determining who is an eligible designated beneficiary
			Designated beneficiaries and the ten-year rule under the SECURE Act of 2020
			Non-designated beneficiaries
			Withdrawal of nondeductible contributions
			Loss on an IRA
			Lines 5a and 5b: Total pensions and annuities
				Pensions and annuities
				Simplified Method
				General Rule
				Lump-sum distributions
				Capital gains treatment
				Special averaging method
				Form 1099-R
				Tax on early distributions
				Minimum distributions
				Disability income
			Lines 6a and 6b: Social Security benefits
				Form SSA-1099
				How much is taxable?
				Base Income Worksheet
				Worksheet I
				Worksheet II
				Tier-one adjustment
				Tier-two adjustment
				Taxable portion
				Repayment of benefits
				Repayment of benefits received in an earlier year
			Line 7: Capital gain (or loss)
			Line 8: Other income from Schedule 1, line 10
				Bartering
				Cancelled debt
				Life insurance
				Other stuff
				Deductions
			Line 9: Your total 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
			Line 8a: Net operating losses (NOLs)
			Line 8b: Gambling income
			Line 8c: Cancellation of debt
			Line 8d: Foreign earned income and housing exclusion
			Line 8e: Income from Form 8853 (Taxable Archer MSAs and Long-Term Care Insurance Contracts)
			Line 8f: Income from Form 8889 (Health Savings Account distributions)
			Line 8g: Alaska Permanent Fund dividends
			Line 8h: Jury duty pay
			Line 8i: Prizes and awards
			Line 8j: Activity not engaged in for profit income
			Line 8k: Stock options
			Line 8l: Income from the rental of personal property
			Line 8m: Olympic and Paralympic medals and USOC prize money
			Lines 8n and 8o: Section 951(a) inclusion and Section 951A(a) inclusion
			Line 8p: Section 461(l) excess business loss adjustment
			Line 8q: Taxable distributions from an ABLE account
			Line 8r: Scholarship and fellowship grants not reported on Form W-2
			Line 8s: Nontaxable amount of Medicaid waiver payments included on Form 1040, line 1a or 1d
			Line 8t: Pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan
			Line 8u: Wages earned while incarcerated
			Line 8z: 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)
			Line 11: Educator expenses
			Line 12: Certain business expenses of certain types of workers
			Line 13: Health Savings Account deduction (Form 8889)
			Line 14: Moving expenses for members of the Armed Forces (Form 3903)
			Line 15: Deductible part of self-employment tax
			Line 16: Self-employed SEP, SIMPLE, and qualified plans
				Looking through your self-employed retirement plan options
				Computing your maximum retirement deductions
			Line 17: Self-employed health insurance deduction
			Line 18: Penalty for early withdrawal of savings
			Lines 19a, b, and c: Alimony paid
				This is alimony
				This isn’t alimony
				Rules and exceptions to alimony
			Line 20: Your and your spouse’s IRA deduction
				Types of compensation needed to qualify for an IRA
				Contribution limits
				Age limits
				Deductible IRA contributions
				Are you covered by your employer’s plan?
				Nondeductible IRA contributions (Form 8606)
				The Roth and other IRAs
				Converting traditional IRAs to Roth IRAs
				Your spouse’s IRA deduction
				If your spouse is employed
				If your spouse isn’t employed
				Contribution age limits for you and your spouse
			Line 21: Student loan interest deduction
			Line 22: Reserved for future use
			Line 23: Archer MSA deduction
			Lines 24a - z: Other adjustments
				Jury pay returned to your employer
				Deductible expenses related to income reported on line 8l from the rental of personal property engaged in for profit
				Non-taxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8m
				Reforestation amortization and expenses
				Repayment of supplemental unemployment benefits under the Trade Act of 1974
				Contributions to section 501(c)(18)(D) pension plans
				Contributions by certain chaplains to section 403(b) plans
				Attorney fees and court costs for actions involving certain unlawful discrimination claims (see instructions)
				Attorney fees and court costs in connection with an award from the IRS for information that helped them find tax law violations
				Housing deduction from Form 2555
				Excess deductions of section 67(e) expenses from Schedule K-1 (Form 1041)
			Other adjustments
		Form 1040, Line 11: Adjusted Gross Income
	Chapter 8 Form 1040, Schedule 2: Additional Taxes
		Schedule 2, Part I: Tax
			Line 1: Alternative Minimum Tax (Form 6251)
			Line 2: Excess advance premium tax repayment (Form 8962)
			Line 3: Add lines 1 and 2
		Schedule 2, Part II: Other Taxes
			Line 4: Self-employment tax (Schedule SE)
			Line 5: Unreported Social Security and Medicare tax on unreported tip income
			Line 6: Uncollected social security and Medicare tax on wages (Form 8919)
			Line 7: Total additional Social Security and Medicare tax
			Line 8: Additional tax on IRAs or other tax-favored accounts (Form 5329)
			Line 9: Household employment taxes (Schedule H)
			Line 10: Repayment of first-time homebuyer credit (Form 5405)
			Line 11: Additional Medicare Tax (Form 8959)
			Line 12: Net investment income tax (Form 8960)
			Line 13: Uncollected Social Security and Medicare or RRTA tax on tips . . .
			Line 14: Interest on tax due on installment income from certain residential sales
			Line 15: Interest on the deferred tax on gain from certain installment sales
			Line 16: Recapture of low-income housing credit (Form 8611)
			Line 17: Other additional taxes
			Line 19: Reserved for future use
			Line 20: Section 965 net tax liability installment from Form 965-A
		Bringing Us to Line 21
	Chapter 9 Form 1040, Schedule 3: Adding Up Your Credits and Payments
		Schedule 3, Part I: Nonrefundable Credits
			Line 1: Foreign tax credit (Form 1116)
			Line 2: Credit for child and dependent care expenses (Form 2441)
			Line 3: Education credits (Form 8863)
			Line 4: Retirement savings contribution credit (Form 8880)
			Lines 5a and 5b: Residential energy credits (Form 5695)
			Line 6: Other nonrefundable credits
			Lines 7 and 8: It’s time to add!
		Schedule 3, Part II: Other Payments and Refundable Credits
			Line 9: Net premium tax credit (Form 8962)
			Line 10: Amount paid with request for extension to file (Form 4868)
			Line 11: Excess Social Security and RRTA tax withheld
			Line 12: Credit for Federal Tax Paid on Fuels (Form 4136)
			Line 13: Other payments or refundable credits
			Lines 14 and 15: And even more math
	Chapter 10 Finishing Up the 1040
		Arriving at Taxable Income
			Form 1040, line 10: Adjustments to income
			Form 1040, line 11: Arriving at adjusted gross income
			Form 1040, line 12a: Standard deduction or itemized deductions (Schedule A)
			Form 1040, Line 13: Qualified business income deduction (Forms 8995 or 8995-A)
			Form 1040, line 14: Add lines 12 and 13
			Line 15: Taxable income
		Calculating Your Tax Liability
			Form 1040, line 16: Tax
				Capital gains and qualified dividends tax worksheet
				Qualified dividends and long-term capital gains
				The kiddie tax: Forms 8615 and 8814
				Those tiny boxes on line 16: Forms 8814 and 4972
			Form 1040, line 17: Amount from Schedule 2, line 3
			Form 1040, line 18: Add lines 16 and 17
			Form 1040, line 19: Child tax credit or credit for other dependents from Schedule 8812
			Line 20: Amount from Schedule 3, line 8
			Form 1040, line 21: Add lines 19 and 20
			Form 1040, line 22: Subtract line 21 from line 18
			Form 1040, line 23: Other taxes, including self-employment tax
			Form 1040, line 24: Add lines 22 and 23. This is your total tax.
		Calculating Your Payments and Refundable Credits
			Form 1040, line 25: Federal income tax withheld
			Form 1040, line 26: 2023 estimated tax payments and amount applied from 2022 return
			Form 1040, line 27: Earned income credit (EIC)
			Form 1040, line 28: Additional child tax credit from Schedule 8812
			Form 1040, line 29: American Opportunity Credit (Form 8863, line 8)
			Form 1040, line 30: Reserved for future use
			Form 1040, line 31: Amount from Schedule 3, line 15
			Form 1040, line 32: Total other payments and refundable credits
			Form 1040, line 33: Total payments
		Refund or Amount You Owe
			Form 1040, line 34: The amount that you overpaid
			Form 1040, lines 35a, b, c, and d: Amount that you want refunded to you
			Form 1040, line 36: Amount of line 34 you want applied to your 2024 estimated tax
			Form 1040, line 37: The AMOUNT YOU OWE line
			Line 36: Estimated tax penalty (Form 2210)
		Finishing Up
Part 3 Filling Out Schedules and Other Forms
	Chapter 11 Itemized Deductions: Schedule A
		Claiming the Standard Deduction
			Older than 65 or blind
			Standard deduction for dependents
		Locating Your Itemized Deductions
			Separate returns and limits on deductions
			But if you change your mind
		Lines 1–4: Medical and Dental Costs
			Medical and dental expense checklist
			Deductible travel costs
			Special medical expense situations
			Meals and lodging
			Insurance premiums
			Reimbursements and damages
			Special schooling
			Nursing home
			Improvements to your home
			Figuring your medical and dental deduction
		Lines 5–7: Taxes You Paid
			Line 5a and 5b: State and local taxes
				Line 5a: State and local income taxes or general sales taxes
				Line 5b: State and local real estate taxes
				Cooperative apartment
				Special assessments
				When you buy or sell real estate
				The downside of property tax refunds and rebates
			Line 5c: Personal property taxes
			Line 5d: Add lines 5a through 5c
			Line 5e: Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately)
			Line 6: Other taxes (foreign income taxes)
			Line 7: Add lines 5e and 6
		Lines 8–10: Interest You Paid
			Lines 8a through 8e: Home mortgage interest and points
				Where is the data?
				Limitations on deductions
				Interest on refinanced loans
				Mixed-use mortgages
				Points
				Qualified mortgage insurance premiums
				Total deductible mortgage interest and points
			Line 9: Investment interest
		Lines 11–14: Gifts to Charity
			Qualifying charities
			Nonqualifying charities
			Contributions of property
				Used clothing and household goods
				Cars, boats, and aircraft
			Charitable deduction limits
				IRA qualified charitable distribution (QCD)
				For the world’s great humanitarians
				Adding up all your deductible contributions
		Line 15: Casualty and Theft Losses (Form 4684)
			Do you have a deductible loss?
			Figuring the loss
		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
			Understanding Forms 1099-INT and 1099-OID
				Identifying the interest income on Forms 1099-INT and 1099-OID
				Dealing with market discounts and bond premiums
			Completing lines 1–4
				Line 1: Taxable interest
				Line 2: Total interest
				Line 3: U.S. Savings Bonds — education program
			Interest-free loans
		Part II, Lines 5–6: Dividend Income
			Line 5: Name, payer, and amount
			Line 6: Total dividends
			Your 1099-DIV: Decoding those boxes
			Reduced tax rates on dividends
		Part III, Lines 7–8: Foreign Accounts and Trusts
	Chapter 13 Business Tax Schedules: C and F
		Schedule C
		Giving Basic Information (A–E)
		Accounting Method Stuff (Boxes F–H)
		Marking Information Returns (Boxes I and J)
		Part I, Lines 1–7: Income
			Line 1: Gross receipts or sales
			Line 2: Returns and allowances
			Line 3: Subtraction quiz
			Line 4: Cost of goods sold
			Line 5: Gross profit
			Line 6: Other income
			Line 7: Gross income
		Part II, Lines 8–27b: Expenses
			Line 8: Advertising
			Line 9: Car and truck expenses
				No help from Uncle Sam with commuting expenses
				Second job
				Temporary job site
				Standard mileage rate or actual expenses?
				Depreciation
				Leased autos
			Line 10: Commissions and fees
			Line 11: Contract labor
			Line 12: Depletion
			Line 13: Depreciation
				To file (or not to file) Form 4562
				IRS depreciation percentages
				Additions or improvements to property
				Half-year convention versus mid-quarter convention depreciation
				Section 179: The $1,160,000 depreciation deduction
				Listed property: Cars used 50 percent or more in your business
				Listed property: SUVs, vans, and heavier trucks
				Listed property: Cars used 50 percent or less for business
				Alternative fuel and hybrid vehicles
			Line 14: Employee benefit programs
			Line 15: Insurance (other than health)
			Line 16a: Mortgage interest
			Line 16b: Other interest
			Line 17: Legal and professional services
			Line 18: Office expense
			Line 19: Pension and profit-sharing plans
			Lines 20a and b: Rent or lease
			Line 21: Repairs and maintenance
			Line 22: Supplies
			Line 23: Taxes and licenses
			Lines 24a–b: Travel and meals
				Your tax home and travel expenses
				Trips that mix business with pleasure
				Trips primarily for personal reasons
				Convention expenses
				Standard meal and incidental allowance — or “my city costs more than your city”
			Line 25: Utilities
			Line 26: Wages
			Line 27a: Other expenses
			Line 27b: Energy efficient commercial buildings deduction
			Line 28: Total expenses
			Line 29: Tentative profit (loss)
			Line 30: Form 8829
			Line 31: Net profit (or loss)
			Lines 32a and b: At-risk rules
			Start-up expenses
		Operating Loss
		Schedule F: Profit or Loss from Farming
			Figuring out Schedule F
				Line C: Accounting method
				Part I: Farm Income — Cash Method
				Part II: Farm Expenses — Cash and Accrual Method
			Identifying tax issues specific to farmers and fishermen
				Estimated taxes
				Operating at a loss
				Your Social Security tax
				Investment credits
				Fuel credits or refunds
				Electric and clean fuel–burning vehicles
				Sale of a farm or equipment
	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
			What’s the starting point?
			Dealing with purchased property
			Looking at property received via inheritance, gift, divorce, or for services
			Making adjustments to your basis
		Part I, Lines 1–7: Short-Term Capital Gains and Losses
			Line 4: Form 6252 short-term gain, and Forms 4684, 6781, and 8824 short-term gain or 
			Line 5: Net short-term gain or  from Schedules K-1: Partnerships, S Corps, and estates/trusts
			Line 6: Short-term capital loss carry-over
			Line 7: Net short-term gain or 
		Part II, Lines 8–15: Long-Term Capital Gains and Losses
			Line 8: Columns (d), (e), (g), and (h)
			Line 11: Long-term gains and losses carried from other forms
				Form 2439, Notice to Shareholders of Undistributed Long-Term Capital Gains
				Form 4797, Sales of Business Property
				Form 6252, Installment Sale Income
			Line 12: Net long-term gain or  from different entities
			Line 13: Capital gain distributions
			Line 14: Long-term capital loss carry-over
			Line 15: Combine lines 8–14 in column (h)
		Part III, Lines 16–22: Summary of Parts I and II
			Line 16: Combine lines 7 and 15
			Line 17: Comparing lines 15 and 16
			Line 18: 28 percent gains
			Line 19: 25 percent gains
			Line 20: Yes or no
			Line 21: Capital losses
			Line 22: Qualified dividends
		Using Schedule D for Home Sales
			Computing your profit
			Reporting a profit that exceeds the exclusion
			Following the home office and rental rules
		Using Form 8949 and Schedule D for Other Stock Matters
			Worthless securities
			Wash sales
			Small business stock
			Stock options
				Incentive stock options (ISOs)
				Employee stock purchase plans
				Nonstatutory stock options
				Options that have expired
			Short sales
			Stock for services
			Appreciated employer securities
		Reporting Nonbusiness Bad Debts
			Day traders
			Mark-to-market traders
		Checking On Cryptocurrency
	Chapter 15 Supplemental Income and Loss: Schedule E
		Part I: Income or Loss from Rental Real Estate and Royalties
			Questions A and B
			Line 1: Physical address and type of each property
			Line 2: Vacation home questions
			Lines 3–4: Income
			Lines 5–19: Expenses
				Line 5: Advertising
				Line 6: Auto and travel
				Line 7: Cleaning and maintenance
				Line 8: Commissions
				Line 9: Insurance
				Line 10: Legal and other professional fees
				Line 11: Management fees
				Line 12: Mortgage interest paid to banks (Form 1098)
				Line 13: Other interest
				Line 14: Repairs
				Line 15: Supplies
				Line 16: Taxes
				Line 17: Utilities
				Line 18: Depreciation expense or depletion
				Line 19: Other
			Lines 20–21: Calculating your income or loss per property
				Line 20: Total expenses
				Line 21: Subtract line 20 from line 3 (rents) and/or 4 (royalties)
			Line 22: Deductible rental real estate loss after limitation, if any, on Form 8582
				Worksheet to determine whether you need to file Form 8582
				The $25,000 special allowance
			The tax shelter rules
			Lines 23–26: IRS math quiz
		Part II: Income or Loss from Partnerships and S Corporations
			Line 27: The at-risk and other tax shelter rules
			Lines 28–32: Name . . . and so on!
				Passive income and loss
				Nonpassive income and loss
		Part III: Income or Loss from Estates and Trusts
			Passive income and loss
			Nonpassive income and loss
		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)
			Parts I and II
			Part III
		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)
			Understanding the adoption credit and exclusion rules
			Figuring out Form 8839
		Motor Vehicle Credits (Form 8936)
		Earned Income Credit (EIC)
	Chapter 17 Other Schedules and Forms to File
		Estimated Tax for Individuals (Form 1040-ES)
			Calculating your Safe Harbor estimated tax payments
			Completing and filing your Form 1040-ES
		Moving Expenses (Form 3903)
		Nondeductible IRAs (Form 8606)
			Part I: Traditional IRAs
			Part II: Conversions from traditional IRAs, SEPs, or SIMPLE IRAs to Roth IRAs
			Part III: Distributions from Roth IRAs
		Forms 8615 and 8814, the Kiddie Tax
		Form 8829, Expenses for Business Use of Your Home
			Considering the “simplified” home office deduction
			Measuring your home office
			Figuring your allowable home office deduction
			Determining your home office’s depreciation allowance
				Line 37: Your home’s value
				Line 38: Land not included
				Line 39: Basis of building
				Line 40: Business portion of your home
				Line 41: Depreciation percentage
				Line 42: Depreciation allowable
			Deducting what’s left
		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
			Receiving your typical notice
			Deciphering a notice
		Assessing Assessment Notices
			General assessment notices — the CP series forms and other notices
			Income verification notice — Form CP-2501
			Request for tax return — Forms CP-515 and CP-518
			We are proposing changes to your tax return — CP-2000
			Backup withholding notice
			Federal tax lien notice — Form 668(F)
		Requesting a Collection Due Process Hearing
			Property levy notice — Form 668-A(c)
			Wage levy notice — Form 668-W(c)
		Handling Non-Assessment Notices
			Paying interest on additional tax
			Receiving a delinquent tax return notice
		Understanding What You Must Know about Audits
		Surviving the Four Types of Audits
			Office audits
			Field audits
			Correspondence audits
			Random statistical audits
		Questioning Repetitive Audits
		Getting Ready for an Audit
		Winning Your Audit
		Understanding the Statute of Limitations on Audits
			Extending the statute of limitations
			The statute of limitations on tax collection is . . .
			Appealing the results of an audit
			Receiving a Statutory Notice of Deficiency
	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
			Misapplied payments
			Misunderstood due date
				Due date for filing or paying fell on Saturday, Sunday, or legal holiday
				Valid extension of time to file
				Late filing
			Wrong income
			Exempt income
				Retirement account
				Municipal bonds
			Double-counted income
			Lost return
				Refund return
				Balance due return
			Lost check
			Tax assessed after statute of limitations
			Partially corrected error
			Erroneous refund
				You returned a refund check
				You didn’t return a refund check sent to you by mistake
			Data-processing error
			Incorrect 1099
			Wrong year
			Never received prior notices
		Getting Attention When the IRS Appears to Be Ignoring You
			Getting to know your local Taxpayer Advocate
			Meeting the criteria for a Taxpayer Advocate case
			Contacting the local Taxpayer Advocate
		Finding Your Refund When It Doesn’t Find You
			How to locate your refund
			Uncashed refund checks
			Interest on refunds
			Refunds and estimated tax payments
			Joint refunds
			Joint estimated payments
			Deceased taxpayer
			Statute of limitations
			Protective claims
			Refund offset program
	Chapter 20 Fixing Your Own Mistakes
		Amending a Return
			More expenses than income (net operating losses)
			The tax benefit rule
		Solving When You Can’t Pay Your Taxes
			Requesting an installment agreement
			Making an offer
			Declaring bankruptcy
			Planning ahead to avoid these problems
		Abating a Penalty
			The Internal Revenue Manual (IRM)
			Court cases that define reasonable cause
				Ignorance
				Litigation
				Timely mailed and presumed received
				Return executed but misplaced
				Return misplaced by the IRS
				Mailing of return on time
				Honest belief
				Illness
				Reliance on accountant
			Excuses that won’t fly
				Delegation of authority
				Incarceration
			IRS rulings and announcements
				Partnership returns — Rev. Proc. 84-35
				Erroneous advice given by IRS employees over the telephone
				Erroneous written advice by IRS
				IRS criteria for determining reasonable cause
			Penalty appeals
		Abating Interest
			When interest is incorrectly charged
			When the IRS wrongly refunds
			When the IRS causes a delay
			When the IRS doesn’t send a bill
			When the IRS sends a bill
			When the 36-month rule expires
		Protecting Yourself with Innocent Spouse Relief
			Determining if you’re eligible
			Receiving relief by separation of liability
			Obtaining equitable relief
			Noting additional innocent spouse rules
			Figuring out injured 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
			Seeking advice after a major decision
			Failing to withhold enough taxes
			Overlooking legitimate deductions
			Passing up retirement accounts
			Ignoring tax considerations when investing
			Not buying a home
			Allowing your political views to distort your decision making
			Ignoring the financial aid (tax) system
			Neglecting the timing of events you can control
				Shifting income
				Bunching or shifting deductions
			Not using tax advisors effectively
		Comprehending the Causes of Bad Tax Decisions
			“Financial planners” and brokers’ advice
			Advertising
			Advice from websites and publications
			Overspending
			Financial illiteracy
	Chapter 22 Trimming Taxes with Retirement Accounts
		Identifying Retirement Account Benefits
			Contributions are (generally) tax-deductible
			Special tax credit for lower-income earners
			Tax-deferred compounding of investment earnings
			Don’t go overboard
		Naming the Types of Retirement Accounts
			Employer-sponsored plans
				401(k) plans
				403(b) plans
				SIMPLE plans
			Self-employed plans
				SEP-IRAs
				Self-employed/i401(k) plans
				Defined-benefit plans
			Individual Retirement Accounts (IRAs)
				“Regular” IRAs
				Nondeductible IRA contributions
				Roth IRAs
				Penalty-free IRA withdrawals
			Annuities
		Taxing Retirement Account Decisions
			Transferring existing retirement accounts
			Taking money out of retirement accounts
				When should you start withdrawing from retirement accounts?
				Naming beneficiaries
				Perplexing pension decisions
	Chapter 23 Small-Business Tax Planning
		Organizing Your Business Accounting
			Leave an “audit” trail
			Separate business from personal finances
			Keep current on income and payroll taxes
		Minimizing Your Small-Business Taxes
			Business tax reform – The Tax Cuts and Jobs Act
			Twenty percent deduction for pass-through entities
			Depreciation versus deduction
			Car costs
			Travel, meal, and entertainment expenses
			Home alone or outside office space?
			Independent contractors versus employees
			Insurance and other benefits
			Retirement plans
			Know your interest deduction and net operating loss limitations
		Deciding to Incorporate or Not to Incorporate
			Liability protection
			Corporate taxes
			Limited liability companies (LLCs)
			S Corporations
			Where to get advice
		Investing in Someone Else’s Business
		Buying or Selling a Business
	Chapter 24 Your Investments and Taxes
		Tapping into Tax-Reducing Investment Techniques
			Buy and hold for “long-term” capital gains
			Pay off high-interest debt
			Fund your retirement accounts
			Use tax-free money market and bond funds
			Invest in tax-friendly stock funds
				Greater fund distributions = more taxes!
				Timing of fund purchases affects tax bill
				Understanding the tax virtues of index funds
		Uncovering Tax-Favored Investments to Avoid
			Limited partnerships
			Cash-value life insurance
		Analyzing Annuities
		Selling Decisions
			Selling selected shares
			Selling securities with (large) capital gains
			Selling securities at a loss
			Selling mutual fund shares and the average cost method
			Selling stock options and taxes
			Selling securities whose costs are unknown
	Chapter 25 Real Estate and Taxes
		Surveying Real Estate Tax Breaks
			Mortgage interest and property tax write-offs
			Home ownership capital gains exclusion
				Grasping that house losses aren’t deductible
				Converting rental property to save on taxes
			Home office deductions
		Purchasing Your Humble Home
			Exploring the tax savings in home ownership
			Deciding how much to spend on a home
			Tracking your home expenditures
			Reporting revenue if you sometimes rent
		Making Tax-Wise Mortgage Decisions
			15-year or 30-year mortgage?
			How large a down payment?
			When to refinance?
		Selling Your House
			Not wanting to sell at a loss
			Converting a home into rental property
			Looking at house sales, taxes, and divorce
		Investing in Real Estate
			Deciding whether real estate investing is for you
			Enjoying rental property tax breaks
				Operating-expense write-offs
				Rolling over capital gains on rental or business real estate
				Setting up a real estate corporation
	Chapter 26 Children and Taxes
		Bringing Up Baby
			Getting Junior a Social Security number
			Taking advantage of childcare tax goodies
				Dependent-care tax credit
				Dependent-care spending accounts
				Child tax credit
				Adoption tax credit
			Tabulating the costs and benefits of a second income
		Navigating Education Tax Breaks and Pitfalls
			The (hidden) financial aid tax system
			College cost tax deductions
			Section 529 plans — state tuition plans
			Education Savings Accounts
			American Opportunity and Lifetime Learning Credits
			Taxes and paying for college
		Being Aware of Taxes on Your Kids’ Investments
			Taxes for kids under 18 and dependent college students
			Tax-wise and not-so-wise investments for educational funds
				Invest in mutual funds and exchange-traded funds
				Think twice about Treasury bonds
				Don’t bother with cash-value life insurance
				Make sure your money grows
	Chapter 27 Estate Planning
		Figuring Whether You May Owe Estate Taxes
			Understanding the federal estate tax exemption and rate
			State estate and inheritance taxes
			Determining your taxable federal estate
		Reducing Expected Estate Taxes
			Giving it away
				How much can you give away?
				What should you give?
			Leaving all your assets to your spouse
			Establishing a bypass trust
			Buying cash-value life insurance
			Setting up trusts
				Living trusts
				Charitable trusts
			Getting advice and help
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 a Moderate Amount of 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 Tax Strategies?
		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
Index
EULA