7things

Seven ThingsYou Should KnowAbout Filing Your

Tax Return

Are you married or single? Are you considered married or single for federal and state tax filing?

Do you have income?

Is it earned, unearned, or not considered income at all?

Are there other people you support?

Are they children or relatives? When are children not children, and adults children?

Do you own a business?

Are you an employee paid as a business? Is your hobby a business, or your business really a hobby?

Do you contribute to or take distributions from retirement plans?

When contributions are deductable, distributions taxable.

Do you have investments?

Have they generated taxable income? Is the income ordinary or a capital gain?

The tax code is not just to raise revenue – it rewards government desired behavior.

Do you qualify for credits or deductions?

Sources:

Internal Revenue Service www.irs.gov

CA Franchise Tax Board www.ftb.ca.gov

Author: Daniel Smith

I am currently working with a business and a non-profit which are involved in re-designing their web sites. What I learn in this class should enable me to provide better input into the process. The class is part of the digital media certificate program, which I expect to complete in another year. I would like to eventually develop a site that would be useful for my clients.