Other Taxes

Other Taxes

Other TaxesForm 1040 Lines 56-61Pub 4012 Tabs 2, 6Pub 17 Chapters 30, 36

4491-27 Other Taxes v11.0 VO.pptx12/29/20111Tax Law Training (NJ) TY2011 v11.0

Notes/Handouts1/6/2012NJ Training TY 20081OTHER TAXESSelf-employment taxesSocial Security and Medicare on Tip IncomeAdditional taxes on IRAs and Other qualified retirement plansRepayment of 2008 First Time Homebuyer Credit (Form 5405)12/29/20112Tax Law Training (NJ) TY2011 v11.0

Following slides go into detail on each2SELF-EMPLOYMENT TAXReceives net income from self-employment income over $400Income as a church employee of $108.28 or more - out of scopeSchedule C or C-EZ triggers Schedule SETaxWise automatically calculates and transfers 50% as an adjustment to income12/29/20113Tax Law Training (NJ) TY2011 v11.0

3 TAX ON UNREPORTED TIPSSS and Medicare tax due on:Employer allocated tips from W-2 Box 8Unreported tips of $20 or more per monthTips of less than $20 per month:Not subject to SS or Medicare taxDo not need to be reported to employerAll unreported tips listed on Form 4137 and transferred to Form 1040 Line 7 12/29/20114Tax Law Training (NJ) TY2011 v11.0

4TAX ON IRAsIRAs and other qualified retirement plansDistributions before age 59 and not rolled-overForm 5329, Part I NEWEarly distribution exceptionsPenalty on Minimum Distribution not taken at/after age 70 Excess contributions and not removed by the due date of the return12/29/20115Tax Law Training (NJ) TY2011 v11.0

5REPAYMENT OF 2008 FIRST TIME HOMEBUYER CREDITIf TP still owns the home, complete Form 5405 Part IV

If TP has sold the home, complete Form 5405 Part III and Part IVIncludes foreclosure12/29/20116Tax Law Training (NJ) TY2011 v11.0

6