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Taxes For Dummies 2024 Edition Eric Tyson Margaret Atkins Munro PDF Download

The 'Taxes For Dummies 2024 Edition' by Eric Tyson and Margaret Atkins Munro is a comprehensive guide to understanding and navigating the U.S. tax system, including preparation, filing, and dealing with the IRS. It covers various tax forms, deductions, credits, and planning strategies for individuals and small businesses. The book is available for download in PDF format and has received high ratings from users.

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26 views145 pages

Taxes For Dummies 2024 Edition Eric Tyson Margaret Atkins Munro PDF Download

The 'Taxes For Dummies 2024 Edition' by Eric Tyson and Margaret Atkins Munro is a comprehensive guide to understanding and navigating the U.S. tax system, including preparation, filing, and dealing with the IRS. It covers various tax forms, deductions, credits, and planning strategies for individuals and small businesses. The book is available for download in PDF format and has received high ratings from users.

Uploaded by

orqbqxinas657
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© © All Rights Reserved
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Table of Contents
Cover
Title Page
Copyright
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
Giving Basic Information (A–E)
Accounting Method Stuff (Boxes F–H)
Marking 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 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
Understanding 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
Tapping into Tax-Reducing Investment Techniques
Uncovering 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 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
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
Connect with Dummies
End User License Agreement

List of Tables
Chapter 1
Table 1-1 2023 Federal Income Tax Brackets and Rates
Chapter 4
Table 4-1 Filing Jointly versus Separately: A Sample Couple
Table 4-2 How to Compute the Cost of Maintaining a Home
Table 4-3 When You Must File
Chapter 6
Table 6-1 State and Local Income Tax Refund Worksheet
Chapter 7
Table 7-1 HR10 and SEP Conversion Table
Table 7-2 Who Can Make a Deductible Contribution in 2023?
Chapter 8
Table 8-1 Repayment Limitation for Premium Tax Credit
Chapter 10
Table 10-1 Tax Rate Schedules for 2023
Table 10-2 Qualified Dividends and Capital Gain Tax Worksheet —
Line 16
Chapter 11
Table 11-1 Standard Deduction Chart for People Age 65 or Older or
Blind in 2023
Table 11-2 Standard Deduction Worksheet for Dependents in 2023
Chapter 13
Table 13-1 Useful Life
Table 13-2 MACRS (Modified Accelerated Cost Recovery System): 5-
Year Property
Table 13-3 MACRS: 7-Year Property
Table 13-4 MACRS: 15-Year Property
Table 13-5 Residential Rental Property (27½-Year)
Table 13-6 Commercial Property (31½ Years and 39 Years)
Table 13-7 Depreciation Deductions for New and Used Cars Subject
to the Luxury C...
Table 13-8 MACRS Straight-Line Method for Auto Depreciation Using
the Half-Year ...
Table 13-9 2021 Annual Depreciation Ceiling for Cars Put into
Service Prior to 2...
Table 13-10 Inclusion Amounts
Chapter 16
Table 16-1 Earned Income Credit Phase-Outs
Chapter 17
Table 17-1 39-Year Depreciation Schedule for Business Use of Home
(%)
Chapter 22
Table 22-1 2023 Tax Credit for the First $2,000 in Retirement Plan
Contributions
Chapter 24
Table 24-1 Federal Tax Rate (2023) on Stock Dividends and Long-
Term Capital Gain...

List of Illustrations
Chapter 1
FIGURE 1-1: Income state tax rates for each state.
Chapter 5
FIGURE 5-1: The biographical section of Form 1040 tells the IRS
who you are and...
FIGURE 5-2: The income section of Form 1040 lists how much you
made in 2023.
FIGURE 5-3: Form W-2 shows how much you earned and various
taxes you paid.
FIGURE 5-4: Form 1099-R tells you about distributions made from
your retirement...
Chapter 6
FIGURE 6-1: Schedule 1, Part I, Additional Income.
FIGURE 6-2: Form 1099-G shows unemployment compensation
benefits received in bo...
Chapter 7
FIGURE 7-1: Form 1040, Schedule 1, Part II may lower your taxes.
FIGURE 7-2: Limit on housing expenses worksheet.
Chapter 8
FIGURE 8-1: Form 1040, Schedule 2, Part I, includes two different
additional in...
FIGURE 8-2: Form 1040, Schedule 2, Part II, includes all the
additional varieti...
Chapter 9
FIGURE 9-1: Form 1040, Schedule 3, Part I, Nonrefundable Credits
FIGURE 9-2: Form 1040, Schedule 3, Part II: Other payments and
refundable credi...
Chapter 10
FIGURE 10-1: Arriving at taxable income on Form 1040.
FIGURE 10-2: Pulling together all the pieces of your tax liability.
FIGURE 10-3: Calculating your total federal income tax.
FIGURE 10-4: The rest of the Form 1040. Fill it in and you’re done.
FIGURE 10-5: A sample check.
Chapter 11
FIGURE 11-1: Use Schedule A to determine the itemized deductions
that you can c...
FIGURE 11-2: Use this decision tree to determine how much of
your initial loan ...
Chapter 12
FIGURE 12-1: Report your interest and dividend income on
Schedule B.
FIGURE 12-2: You receive Form 1099-INT from institutions that pay
you taxable i...
FIGURE 12-3: Form 1099-DIV shows you the dividends you reaped
in 2021.
Chapter 13
FIGURE 13-1: Schedule C, Page 1.
FIGURE 13-2: Schedule F, Profit or Loss From Farming.
Chapter 14
FIGURE 14-1: Schedule D, Page 1.
FIGURE 14-2: Form 8949, Page 1.
Chapter 15
FIGURE 15-1: Schedule E, Page 1.
FIGURE 15-2: Schedule E, Page 2.
Chapter 19
FIGURE 19-1: Here’s how to compose a “Dear IRS” letter that gets
right to the p...
FIGURE 19-2: Use this battle-proven generic letter to respond to an
IRS notice....
Chapter 20
FIGURE 20-1: A sample reasonable cause letter.
FIGURE 20-2: A sample letter to abate interest.
Chapter 27
FIGURE 27-1: State estate and inheritance taxes.
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