Income

Income from work, investments, retirement, social security, jury duty, interest, etc., get reported on the 1040. Here are links to resources to explain the different types of income that are in-scope for the VITA program. Remember, your PUB 4012 has a list of what is in scope for the VITA program (see page 7) and covers how to enter them in Taxslayer (See Tab D Income)

Click the image below to go to the IRS Link&Learn online interactive Module on Wages, Interest/Dividends, etc.

FYI-Ordinary & Qualified Dividends-- what's the difference? Answer, the rate they are taxed. But have no fear, you don't have to do anything special. Once you enter the Dividend information into the appropriate fields, the system will automatically calculate the correct income tax for the return--you can see the calculations on the Qualified Dividends & Capital Gain Worksheet if you are so inclined to review it. I noticed an income tax liability that was way off for the total income the client earned--it took me a few minutes to realize the qualified dividends were throwing off the calculations from what I was expecting. So, whenever the tax amount seems off to me, I look for this worksheet and have an "a-ha" moment.

Click below for more resources on the following topics:
(and below them are more resources from TON)