Fuller Tax Blog Blog

Form 944 vs. 941: Which Form Should I Use?

Both of IRS Forms 944 and 941 are used by employers to report employment taxes to the IRS. These taxes include social security tax, medicare tax, additional medicare tax and federal income tax withheld from employee paychecks when payroll is run. Form 944 is an annual report of employment taxes, while the Form 941 is a quarterly report of payroll...

Picture of Form 1040 pages 1 and 2.

Form 1040, Line 10: When are Tax Refunds Taxable?

When completing a Form 1040, there is often confusion related to Form 1040, Line 10. When are state and local income tax refunds taxable? When are they not taxable? Prior-Year State and Local Taxes Deduction and Taxable Income Whether or not refunds of state or local taxes are taxable depends on the answers to the following questions: Whether or not...

Picture of Form 1065

Partnerships: Aggregate vs. Entity Approach

Under U.S. tax law, taxation of partnerships is governed by Subchapter K of the Internal Revenue Code, and this particular field of tax is widely understood as the most sophisticated area of taxation regimes in the United States. Much of the sophisticated (and potentially counter-intuitive) methods found in Subchapter K stem from two competing approaches to how we view the...

Closeup of IRS signage near an entrance to the IRS building in Washington, D.C.

IRS Announces 2017 Standard Mileage Rates

Today the IRS announced the standard mileage rates for the 2017 tax year, which can be used by taxpayers to calculate their deductions resulting from costs for use of an automobile for the purpose of business, charitable activities, or moving. The new standard mileage rates beginning January 1, 2017 are as follows:[1] Type of Vehicle Use 2017 Mileage Rate 2016...

View of the City of Chicago from above

Chicago Checkout Bag Tax: A Complete Guide

On November 16th, 2016, the Chicago City Council approved several new ordinances as part of Mayor Rahm Emanuel’s budget plan for the new year, including a newly developed “Checkout Bag Tax”, a new fee-like tax that equates to 7 cents per checkout bag used being charged to consumers who purchase goods from retailers located in the city of Chicago. The...