Tagged: form 1040

Photograph of page 1 and 2 of Federal Form 1040 stacked on top of one another.

Form 1040, Line 12: What counts as Business Income?

Most new self-filing taxpayers who begin working on their own Form 1040 will get to Form 1040, Line 12, and see the following, which very often will leave them confused: The term “business income”, as far as Form 1040 Line 12 is concerned, does not have as broad of meaning as you may expect. In this context, business income could...

Picture of crayons in a line, one of the many supplies used in a classroom. 0

Everything You Need to Know about Deducting Educator Expenses

The Issue: The issue discussed in this article is the pre-AGI deduction available to teachers who purchase books, equipment, and other supplies for use in their classroom. The key questions we’ll discuss in this article include the following: Who qualifies to take the deduction? Which expenses are deductible? What amount of expenses are deductible? How long is the deduction available...