Please complete a 2022 Form 1040 and accompanying forms and schedules for
Matteo using 2022 forms:
Matteo Franco is not married and supports their 12-year-old child who lives with them. Matteo works as a self-employed driver with gross revenue of $69,700 and business expenses of $11,400 (make-up the classification of the expenses, e.g.
supplies). Matteo’s only other income was interest of $2,300, qualifying dividends of $2,150, and other information follows
Contribution to solo Section 401(k) retirement plan $ 3,900
Loss on sale of Alphatech stock held 2 years -3,100
Mortgage interest on primary residence 9,950
State and local property tax on residence 5,350
Property tax included in personal auto registration 260
State sales taxes paid 370
State income taxes paid 1,450
Charitable contributions of cash 1,750
Political contributions 550
Three comments that might help:
Qualified dividends are included in ordinary dividends on the form 1040.
You are not required to complete the Schedule D Worksheet. Just consult the last example in “drnos Capital Gain calcs 2023.ppt” to calculate the tax.
Claim the QBI deduction on the appropriate line of the Form 1040, but no additional form is required.
Use the 2022 tax forms. Use 2023 tax rates and standard deduction, if applicable. The forms can be found here:
https://www.irs.gov/pub/irs-pdf/f1040.pdf
https://www.irs.gov/pub/irs-pdf/f1040s1.pdf
https://www.irs.gov/pub/irs-pdf/f1040sa.pdf
https://www.irs.gov/pub/irs-pdf/f1040sd.pdf
https://www.irs.gov/pub/irs-pdf/f1040sse.pdf
https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
These are fillable forms, so you can fill them in online, print them and write them out, or use tax preparation software. Once complete, print them and submit on paper in class.
Question I asked: Since the dividends would not be taxed at ordinary rates, should the tax be record in Schedule 2 under “Any other taxes” and listed in Line 23 of Form 1040? Or should the tax on dividends just be added to the tax on ordinary income and simply listed on Line 16 of Form 1040?
Answer: The latter.
The income tax on the for of the Form 1040 includes the ordinary tax and the capital gains/dividends tax without any explanation.
Technically, you would complete the worksheet at the end of the instructions to Schedule D (
https://www.irs.gov/instructions/i1040sdLinks
to an external site.), which is unbelievably complex for a simple calculation. Don’t do that! Just take, as you suggest, the:
Tax on ordinary income,
Add: tax on dividends at capital gains rate,
Equals: Income tax on Line 23.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more