2021 TTB Brochure Retail 0521.indd - TheTaxBook

866-919-5277 • thetaxbook.com • Tax research solutions for time-crunched tax professionals.

Fast-Answer Tax Research Books

Unlimited-UsePromotional Handouts

Fast-Answer Online Tax Research

Must-TakeOnline Tax Courses

Page 2

WebLibrary OnlineCPE

TheTaxBook

WHAT’S NEWPACKAGE

Save $63Off Retail!$89

11

HandoutsClient

Page 7 0 Page 12

TheTaxBook was voted the #1 Tax Research Solution in the CPA Practice Advisor’s Readers’ Choice Awards from 2013-2021.VOTED #1 TAX RESEARCH PRODUCT 9 YEARS IN A ROW!

DELUXEDEAL

Save $43Off Retail!$139BUY 2

& SAVE!

Award-winning tax research solutionsfor time-crunched tax professionals.

TTBBUNDLE

Save $204Off Retail!$449 JACOB

SPECIALSave $155Off Retail!$349

2021 SPECIAL OFFERS

Deluxe Edition Plus $99WebLibrary Plus 1st User $279Client Handouts $ 1498 Online CPE Hours $119Free Shipping $7

Total Retail Value $653

Deluxe Edition Plus $99Deluxe Supplement $69Free Shipping $14


Early Edition $69Tax Season Edition $69Free Shipping $14


Deluxe Edition Plus $99WebLibrary Plus 1st User $2798 Online CPE Hours $119Free Shipping $7

Total Retail Value $504HandoutsClient

TheTaxBook TheTaxBook

MOSTPOPULAR!

All of All of our b t our b t sellers sellers in one in one

bundle!bundle!

Includ Includ Bot hBot h

Print & Print & Online Online

R earchR earch

Books Books Released Released Every 6 Every 6 MonthsMonths

Our Two Our Two Most Most

Popular Popular BooksBooks

OnlineCPEOnlineCPE

WebLibrary WebLibrary

2 866-919-5277 • thetaxbook.com • Tax research solutions for time-crunched tax professionals.

Fast-Answer Tax Research Books. Save time, guaranteed. We compile the mountains of tax information, condense it for quick comprehension, and present it in a fast-answer format. TheTaxBook

Individual Tabs 1-17

Business Tabs 18-26

1 What’s New2 2021 Federal Tax Table & EIC Table3 1040 Line InstructionsFastTaxFacts: Dependents4 Itemized Deductions, A5 Sole Proprietorships and Farmers, C, F, SE6 Investment Income, B, D, 47977 Rental, Passive, and At-Risk, E8 Business Deductions9 Depreciation, 456210 Automobiles and Listed Property11 Tax Credits12 Children, College, and Family13 Retirement, Social Security, and Medicare14 Other 1040 Topics15 IRS, Penalties, and Audits16 Where to File and ToolsFastTaxFacts: 1099/W-2 Roadmap17 States

18 C Corporations, 112019 S Corporations, 1120S20 Partnerships and LLCs, 106521 Estates, Trusts, and Fiduciaries, 1041,706, 70922 Employee Benefits23 Payroll and Labor Laws, 940, 94124 Business Tools and Worksheets25 Other Business Topics26 What’s New Business

DELUXE SUPPLEMENT

DELUXE EDITION Plus 530+ PAGES

300+ PAGES

Deluxe Edition Plus Includes TwoFastTaxFacts!Dependents(Bound in after Tab 3)

1099 / W-2 Roadmap(Bound in after Tab 16)

See page 4 for additional information on FastTaxFacts.

Individual Forms: 1040, 2441, 4562, 4684, 4797, 6251, 8283, 8582, 8606, 8829, 8863, 8949Business Forms:1120, 1120S, 1065, 1041, 706, 709, 941, 940, 990Schedules: 1, 2, 3, A, B, C, D, E, EIC, F, H, SE

Business Forms: 996, 990, 1023, 1024, 1028, 1099-DIV, 1099-SA, 3800, 5330, 8594, 8889, 8925Schedules: M-1, M-2, M-3

The Deluxe Edition Plus is by far our best seller! The book contains both individual and small business information. You will fi nd information fast, with well-written and easy-to-understand explanations and examples. thetaxbook.com/deluxe

The perfect complement to the Deluxe Edition Plus. Find expanded coverage of small business topics plus information on popular occupations and oddities. thetaxbook.com/deluxesupplement

Save $43Off Retail!

Deluxe Deal

$139

BESTSeller

$99

$69

Start Ship Date 12/15/21


Business Tabs 27-4127 Starting a Business, Sch M-1/M-328 Sales, Dispositions, Liquidations29 Small Business Retirement30 Employee Health Benefits31 Business Credits32 Tax-Exempt Organizations33 Business Audit Strategies34 States Business Tax Summary35 Daycare Providers36 Direct Sellers & Sales Representatives37 Employee Stock Options38 Farmers, Ranchers, and Hobbies39 Virtual Currency40 Real Estate and Rental Activities41 Restaurants

$32Value!

Deluxe Edition Plus $99Deluxe Supplement $69Free Shipping $14


- Beatrice Ford, Covina, CA

“I wouldn’t prepare tax “I wouldn’t prepare tax returns without Th eTaxBook”returns without Th eTaxBook”

All seven of the following tests must be met in order for a taxpayer to claim an-other person as a dependent in 2012. Test numbers 4 through 7 vary depending on whether the person is a qualifying child or a qualifying relative of the taxpayer.1) Taxpayer ineligible if a dependent test. To claim another person as a depen-

dent, the taxpayer, or spouse of taxpayer if filing jointly, cannot be claimed as a dependent on someone else’s tax return.

2) Married filing joint test. A person cannot be treated as a dependent if he or she files a joint return with a spouse. This rule does not apply if the joint return was filed only as a claim for refund and no tax liability would exist for either spouse if they had filed separate returns.

3) Citizen or resident test. The person claimed as a dependent must be either a U.S. citizen, U.S. national, or a resident of the U.S., Canada, or Mexico. An adopted child that lived with the taxpayer all year passes this test if the taxpayer is a U.S. citizen or U.S. national.

Qualifying Child Qualifying Relative4) Relationship test. The child must be the taxpayer’s son, daughter,

stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these, such as the taxpayer’s grandchild, niece, or nephew. Note: If a child meets tests 4 through 7 for more than one taxpayer, see Qualifying Child of More Than One Person,Tab 3 of TheTaxBook, 1040 Edition/Deluxe Edition.

4) Relationship test. A relative of the taxpayer must be:• A son, daughter, stepchild, foster child, or a descendant of any of these (such as a grandchild), or• A brother, sister, or a son or daughter of either of these (such as a niece or nephew), or• A father, mother, or an ancestor or sibling of either of them (such as a grandmother, grandfather,

aunt, or uncle), or• A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law,

mother-in-law, brother-in-law, or sister-in-law, or• Any other person (other than the taxpayer’s spouse) who lived with the taxpayer all year as a

member of the taxpayer’s household if the relationship does not violate local law.

5) Member of household test. The child must have lived with the taxpayer for more than half of 2012. Exceptions apply.

5) Not a qualifying child test. The relative must not be a qualifying child of any other person in 2012.

6) Age test. The child must be:• Under age 19 at the end of 2012 and younger than the taxpayer

(or spouse if MFJ), or• Under age 24 at the end of 2012, a full time student for any part

of five calendar months during 2012, and younger than the taxpayer (or spouse if MFJ), or

• Any age and permanently and totally disabled.

6) Gross income test. The relative must have gross income of less than $3,650 in 2012.

7) Support test. The child cannot have provided over half of his or her own support during 2012.

7) Support test. The taxpayer must have provided over half of the relative’s support in 2012. This test does not apply for persons who qualify as dependents under the children of divorced or separated parents rule, the multiple support agreements rules, or the rule for kidnapped children.

Note: If a taxpayer’s child is not a dependent under the qualifying child rules, the child may still qualify as a dependent under the qualifying relative rules.

Schedule E Details

At-risk limits. Losses are allowed only up to the amount of the taxpayer’s risk of

financial loss from the activity.

Passive activity loss limits. A taxpayer’s passive activity losses are allowed only up

to the amount of passive activity gains for the year.

Passive activities. Trade or business activities where the taxpayer does not materi-

ally participate (such as an interest in a limited partnership). Rental activities are

passive by statute, with the exception of real estate professionals and specific activi-

ties that are considered non-rental by regulation.

Rental property considered non-rental. Certain activities such as short term rentals,

rentals provided along with significant services, and activities where the rental is in-

cidental to non-rental activities are not considered rental activities for the purposes

of passive loss rules and are therefore not passive activities by default.

$25,000 special loss allowance for rental real estate. A special exception to the pas-

sive loss limits allows a loss of $25,000 for taxpayers who actively participate in the

rental activity and have AGI of $100,000 or less ($50,000 MFS).

Self-employment tax on rental real estate. Income from the rental of real estate is

not subject to SE tax, with the exception of real estate dealers [Reg. §1.1402(a)-4].

Real estate professionals. Taxpayers who materially participated in a real property

trade or business and spent at least 750 hours in the activity during the year are con-

sidered real estate professionals and are not subject to passive loss limits.

Real estate dealers. Income of a real estate dealer is subject to SE tax. A real es-

tate dealer is a person whose primary business is to sell real estate to customers.

Note: An individual who holds real estate for the primary purpose of investment or

speculation is not considered a real estate dealer, even if rental income is derived

from the property.

Working interest in oil or gas property. An interest held directly by the taxpayer or

through an entity that does not limit liability.

Rental Activity Income

Real estate professional?

YesNo

Not subject to passive loss limitsSubject to passive loss limits

Was the rental income from an activity

as a real estate dealer?

No

Yes

Was the rental income from an

activity as a real estate dealer?

YesNo

Not subject to SE taxSubject to SE tax

Partnerships

LossGeneral Partner

Guaranteed payments and/or

distributive share of income

Limited PartnerLoss

Guaranteed Distributive

payments share of income

Subject to SE taxNot subject to SE tax

Material participation?

YesNo

Not subject to

passive loss limits

Working interest in oil or gas

property?

YesNo

Subject to passive loss limits

Dependents 3-1FASTTAXFACTS

Dependency Tests for 2021All seven of the following tests must be met in order for a taxpayer to claim another person as a dependent. Test numbers 4 through 7 vary depending on whether the person is a qualifying child or a qualifying relative.1) Dependent taxpayer test. To claim another person as a dependent,

the taxpayer, or spouse of the taxpayer if fi ling jointly, cannot be eligible to be claimed as a dependent on someone else’s tax return.

2) Joint return test. A person cannot be treated as a dependent if he or she fi les a joint return with a spouse. This rule does not apply if the joint return was fi led only to claim a refund of withheld income tax or estimated tax paid.

3) Citizen or resident test. The person claimed as a dependent must be either a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico. An adopted child (or child lawfully placed for legal adoption) that lived with the taxpayer all year passes this test if the taxpayer is a U.S. citizen or U.S. national.

Qualifying Child Qualifying Relative

4) Relationship test. The child must be the taxpayer’s son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of these, such as a grandchild, niece, or nephew.

Note: If a child meets tests 4 through 7 for more than one taxpayer, see Qualifying Child of More Than One Person, page 3-3.

4) Relationship or member of household test. A relative of the taxpayer must be:• A son, daughter, stepchild, foster child, or a descendant of any of these (such as a grandchild),• A brother, sister, half brother, half sister, or a son or daughter of either of these (such as a niece or

nephew),• A father, mother, or a direct ancestor or sibling of either of them (such as a grandmother, grand father, aunt,

or uncle), but not foster parent,• A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law,

brother-in-law, or sister-in-law, or• Any other person (other than the spouse) who lived with the taxpayer all year as a member of the

taxpayer’s household if the relationship does not violate local law. See Exceptions to Time Lived With Taxpayer, below.

5) Residency test. The child must have lived with the taxpayer for more than half of the year. See Exceptions to Time Lived With Taxpayer, below.

5) Not a qualifying child test. The relative must not be a qualifying child of any other taxpayer for the year. For this purpose, a person is not a taxpayer if he or she is not required to fi le a tax return and either does not fi le a return or only fi les a return to get a refund of withheld income tax or estimated tax paid.

6) Age test. The child must be:• Under age 19 at the end of the year and

younger than the taxpayer (or spouse, if MFJ), or

• A student under age 24 at the end of the year and younger than the taxpayer (or spouse, if MFJ), see Student, below, or

• Permanently and totally disabled at any time during the year, regardless of age. See Permanently and Totally Disabled, below.

6) Gross income test. The relative must have gross income of less than $4,300 in 2020.Gross income defi ned. Gross income is all income (money, property, services) that is not exempt from tax.

Gross income includes all taxable unemployment compensation, taxable Social Security benefi ts, and certain scholarship and fellowship grants. Scholarships received by degree candidates that are used for tuition, fees, supplies, books, and equipment required for particular courses are generally not included in gross income. See Exception to Gross Income Test, below.

7) Support test. The child cannot provide over half of his or her own support during the year.Note: Third party payments (welfare, TANF, etc.) and scholarships received by a student are not considered support provided by the child.

7) Support test. The taxpayer must provide over half of the relative’s total support during the year. This test does not apply for persons who qualify as dependents under the children of divorced or separated parents rule, the multiple support agreements rules, and the rule for kidnapped children.

See Dependent Parent Special Rule, below.

Note: If a taxpayer’s child is not a dependent under the qualifying child rules, the child may still qualify as a dependent under the qualifying relative rules. However, claiming the child as a dependent under the qualifying relative rules will not qualify the taxpayer for the Earned Income Credit or the Child Tax Credit.

Exceptions to Time Lived With Taxpayer

Temporary absences for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facil-ity, count as time the person lived in the home. A child who was born or died during the year is treated as having lived with the taxpayer for more than half of the year if the taxpayer’s home was the child’s home for more than half the time he or she was alive. A stillborn child does not qualify as a dependent. A child kidnapped by a non-family member may still be a qualifying child. See Kidnapped Child, page 3-2.

Student A student must be enrolled full-time during some part of each of any fi ve calendar months during the year at a school, or taking a full-time on-farm training course given by a school, or a state, county, or local government agency. See School Defi ned, page 3-2.

Permanently and Totally Disabled

A person is permanently and totally disabled if, at any time during the year, he or she cannot engage in any substantial gainful activity because of a physical or mental condition, and a doctor has determined that this condition has lasted, or can be expected to last, continuously for at least a year or can be expected to lead to death.

Exception to Gross Income Test

If the taxpayer’s qualifying relative is permanently and totally disabled at any time during the year, certain income for services performed at a sheltered workshop is excluded for this test.

Dependent Parent Special Rule

If the taxpayer’s qualifying person is the taxpayer’s father or mother, the taxpayer may be eligible to fi le as Head of Household even if the father or mother does not live with the taxpayer. However, the taxpayer must be able to claim the father or mother as a dependent and pay more than half the cost of keeping up a home that was the main home for the entire year for the father or mother. This includes paying more than half the cost of keeping the parent in a rest home or home for the elderly.

HOW A CHILD OR OTHER QUALIFYING PERSON AFFECTS A CLIENT’S TAX RETURN FAST ANSWER CHARTS 2021TAX

YEAR

DEPENDENTS

FASTTAXFACTS

stepbrother, stepsister, or a descendant of any of these, such as a grandchild, niece, or nephew.

If a child meets tests 4 through 7 for more than one taxpayer, see Than One Person,

• A father, mother, or a direct ancestor or sibling of either of them (such as a grandmother, grand father, aunt, or uncle), but not foster parent,

• A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law,

Residency test. the taxpayer for more than half of the year. See Exceptions to Time Lived With Taxpayer,

Age test. The child must be:• Under age 19 at the end of the year and

younger than the taxpayer (or spouse, if MFJ),

• A student under age 24 at the end of the year and younger than the taxpayer (or spouse, if MFJ), see Student,

• Permanently and totally disabled at any time during the year, regardless of age. See Permanently and Totally Disabled,

Support test. The child cannot provide over half of his or her own support during the year.

Third party payments (welfare, TANF, etc.) and scholarships received by a student are not considered support provided by the child.

If a taxpayer’s child is not a dependent under the qualifying child rules, the child may still qualify as a dependent under the qualifying relative rules. However, claiming the child as a dependent under the qualifying relative rules will not qualify the taxpayer for the Earned Income Credi

Exceptions to Time Lived With

Permanently and Totally

Exception to Gross Income

Dependent Parent Special

FASTTAXFACTS

than one taxpayer, see Than One Person,

• A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law,

The child must have lived with the taxpayer for more than half of the year. See Exceptions to Time Lived With Taxpayer,

The child must be:• Under age 19 at the end of the year and

younger than the taxpayer (or spouse, if MFJ),

• A student under age 24 at the end of the year and younger than the taxpayer (or spouse, if

Student,• Permanently and totally disabled at any

time during the year, regardless of age. See Permanently and Totally Disabled,

The child cannot provide over half of his or her own support during the year.

Third party payments (welfare, TANF, etc.) and scholarships received by a student are not considered support provided by the child.

If a taxpayer’s child is not a dependent under the qualifying child rules, the child may still qualify as a dependent under the qualifying relative rules. However, claiming the child as a dependent under the qualifying relative rules will not qualify the taxpayer for the Earned Income Credi

All seven of the following tests must be met in order for a taxpayer to claim an-other person as a dependent in 2012. Test numbers 4 through 7 vary depending on whether the person is a qualifying child or a qualifying relative of the taxpayer.1) Taxpayer ineligible if a dependent test. To claim another person as a depen-


2) Married filing joint test. A person cannot be treated as a dependent if he or she files a joint return with a spouse. This rule does not apply if the joint return was filed only as a claim for refund and no tax liability would exist for either spouse if they had filed separate returns.



stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these, such as the taxpayer’s grandchild, niece, or nephew. Note: If a child meets tests 4 through 7 for more than one taxpayer, see Qualifying Child of More Than One Person,Tab 3 of TheTaxBook, 1040 Edition/Deluxe Edition.

4) Relationship test. A relative of the taxpayer must be:• A son, daughter, stepchild, foster child, or a descendant of any of these (such as a grandchild), or• A brother, sister, or a son or daughter of either of these (such as a niece or nephew), or• A father, mother, or an ancestor or sibling of either of them (such as a grandmother, grandfather,

aunt, or uncle), or• A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law,

mother-in-law, brother-in-law, or sister-in-law, or• Any other person (other than the taxpayer’s spouse) who lived with the taxpayer all year as a

member of the taxpayer’s household if the relationship does not violate local law.



6) Age test. The child must be:• Under age 19 at the end of 2012 and younger than the taxpayer

(or spouse if MFJ), or• Under age 24 at the end of 2012, a full time student for any part

of five calendar months during 2012, and younger than the taxpayer (or spouse if MFJ), or


6) Gross income test. The relative must have gross income of less than $3,650 in 2012.

7) Support test. The child cannot have provided over half of his or her own support during 2012.

7) Support test. The taxpayer must have provided over half of the relative’s support in 2012. This test does not apply for persons who qualify as dependents under the children of divorced or separated parents rule, the multiple support agreements rules, or the rule for kidnapped children.


on whether the person is a qualifying child or a qualifying relative of the taxpayer.1)

Qualifying Child4)

5)

6)

7)

Note:

Schedule E Details

At-risk limits. Losses are allowed only up to the amount of the taxpayer’s risk of

financial loss from the activity.

Passive activity loss limits. A taxpayer’s passive activity losses are allowed only up

to the amount of passive activity gains for the year.

Passive activities. Trade or business activities where the taxpayer does not materi-

ally participate (such as an interest in a limited partnership). Rental activities are

passive by statute, with the exception of real estate professionals and specific activi-

ties that are considered non-rental by regulation.

Rental property considered non-rental. Certain activities such as short term rentals,

rentals provided along with significant services, and activities where the rental is in-

cidental to non-rental activities are not considered rental activities for the purposes

of passive loss rules and are therefore not passive activities by default.

$25,000 special loss allowance for rental real estate. A special exception to the pas-

sive loss limits allows a loss of $25,000 for taxpayers who actively participate in the

rental activity and have AGI of $100,000 or less ($50,000 MFS).

Self-employment tax on rental real estate. Income from the rental of real estate is

not subject to SE tax, with the exception of real estate dealers [Reg. §1.1402(a)-4].

Real estate professionals. Taxpayers who materially participated in a real property

trade or business and spent at least 750 hours in the activity during the year are con-

sidered real estate professionals and are not subject to passive loss limits.

Real estate dealers. Income of a real estate dealer is subject to SE tax. A real es-

tate dealer is a person whose primary business is to sell real estate to customers.

Note: An individual who holds real estate for the primary purpose of investment or

speculation is not considered a real estate dealer, even if rental income is derived

from the property.

Working interest in oil or gas property. An interest held directly by the taxpayer or

through an entity that does not limit liability.


Real estate professional?

YesNo

Not subject to passive loss limitsSubject to passive loss limits

Was the rental income from an activity

as a real estate dealer?

No

Yes

Was the rental income from an

activity as a real estate dealer?

YesNo

Not subject to SE taxSubject to SE tax

Partnerships

LossGeneral Partner

Guaranteed payments and/or

distributive share of income

Limited PartnerLoss

Guaranteed Distributive

payments share of income

Subject to SE taxNot subject to SE tax

Material participation?

YesNo

Not subject to

passive loss limits

Working interest in oil or gas

property?

YesNo


1099/W-2 Roadmap 2-1FASTTAXFACTS

W-2, Wage and Tax StatementBox Description Report On

1 Wages, tips, other compensation

Wages, tips, and other compensation subject to federal income tax. Includes value of taxable fringe benefits.Does not include elective deferrals such as employee contributions to 401(k) plans.Statutory employees: Includes payments subject to Social Security and Medicare taxes but not subject to federal income tax withholding.

Line 1, Form 1040.

Statutory employees: Line 1, Schedule C and check the box.

2 Federal income tax withheld

Total federal income tax withheld from the employee’s wages for the year. Line 25a, Form 1040.

3 Social Security wages Wages subject to withholding of Social Security tax. Maximum applicable wages $137,700 (2020). Includes elective deferrals such as employee contributions to a 401(k) plan. Does not include Social Security tips or allocated tips.

Not reported on Form 1040.(Line 8a, Schedule SE, if also self-employed.)

4 Social Security tax withheld

Total employee Social Security tax (6.2%) withheld on wages (box 3) and tips (box 7). Maximum Social Security tax withholding is $8,537.40 (2020). Excess withholding for employees with two or more jobs is reported as a refundable credit on Form 1040.

Line 10, Schedule 3, only if maximum withholding is exceeded.

5 Medicare wages and tips Wages and tips subject to withholding of Medicare tax. There is no maximum limit of wages subject to Medicare tax.

Not reported on Form 1040.(Line 1, Form 8959, if subject to additional Medicare tax.)

6 Medicare tax withheld Medicare tax rate of 1.45% applied to Medicare wages and tips (box 5). Additional Medicare tax withheld at 0.9% on Medicare wages over $200,000.

Line 19, Form 8959, Additional Medicare Tax, if applicable.

7 Social Security tips Tips the employee reported to the employer. Already included in box 1 and box 5, Form W-2.

8 Allocated tips Tips allocated to an employee by certain food and beverage establishments. This amount is not included in boxes 1, 3, 5, or 7, and no tax is withheld from these tips. Form 4137, Social Security and Medicare Tax on Unreported Tip Income, is used to compute the Social Security and Medicare tax owed on allocated tips.

Line 1, Form 1040.Line 1, Form 4137.

10 Dependent care benefits Benefits received under an employer’s dependent care assistance program. Any amount over $5,000 is also included in box 1. If benefits do not exceed actual expenses, none of the benefits are taxable. If benefits exceed qualified expenses for dependent care, the excess is added to wages.

Line 12, Part III, Form 2441, Child and Dependent Care Expenses.

11 Nonqualified plans Distributions from a nonqualified plan or nongovernmental section 457(b) plan. Used by SSA to determine if amounts in boxes 1, 3, and/or 5 were earned in a prior year.

Already included in wages in box 1 (or box 3 and/or box 5), Form W-2.

12 Codes Letter codes indicating a variety of taxable and nontaxable items. For an explanation of Form W-2 codes, see 2020 Form W-2 Codes and Form 1099-R Codes, Tools for Tax Pros, www.thetaxbook.com/tools.

Various.

13 Checkboxes Checkboxes indicating pay as a statutory employee (see box 1 above), enrollment in an employer retirement plan, or third-party sick pay.

Various.

14 Other Reports other information to the employee such as state disability insurance taxes withheld, union dues, nontaxable income, educational assistance payments, and railroad retirement (RRTA) compensation.

Various.

15 – 20 State and local State and local income tax information. Used to report wages and taxes for multiple states and localities.

Various.

W-2G, Certain Gambling WinningsBox Description Report On

1 Reportable winnings Gambling winnings of $1,200 or more from bingo or slot machines, $1,500 or more in winnings (reduced by wager) from keno, more than $5,000 in winnings (reduced by wager or buy-in) from a poker tournament, $600 or more in other gambling winnings, or any other gambling winnings subject to federal income tax withholding. Gambling losses up to the amount of gambling winnings are deductible as an other itemized deduction.

Line 8, Schedule 1, for winnings.Line 16, Schedule A, Itemized Deductions, for losses.

Note: Unless indicated, all schedules refer to Form 1040, U.S. Individual Income Tax Return.

EXPLANATIONS AND WHERE TO REPORT 1099 AND W-2 ITEMS ON THE TAX RETURN FAST ANSWER CHARTS 2020TAX

YEAR

1099/W-2 ROADMAP


1040 EDITION

If you prepare individual returns, and the associated schedules, the 1040 Edition is the book for you. This book contains the same individual information as the Deluxe Edition Plus (Tabs 1-17). thetaxbook.com/1040

The perfect companion to the 1040 Edition. This book contains the same business information as the Deluxe Edition Plus (Tabs 18-26) as well as eight additional tabs (Tabs 27-34).thetaxbook.com/smallbusiness

SMALL BUSINESS

COMPARISON OF FEDERAL EDITIONS

320+ PAGES

360+ PAGES

Tabs1-17

Tabs 18-26

Tabs27-34

Tabs35-41

2FastTaxFacts

Deluxe Edition Plus ✓ ✓ ✓

Deluxe Supplement - NEW! ✓ ✓

1040 Edition ✓

Small Business ✓ ✓

the 1040 Edition is the book for you. This book contains the same

thetaxbook.com/1040

The Deluxe Edition Plus contains the entire 1040 Edition and the most referenced tabs from the Small Business including C Corps., S Corps., Partnerships, LLCs, Estates & Trusts, and more.

Quantity DiscountBuy 3 or more items and save!

FREE Online CPE HoursReceive 1 hour per copy of

TheTaxBook.

BONUS

TheTaxBook

Individual Tabs 1-17

1 What’s New2 2021 Federal Tax Table

and EIC Table3 1040 Line Instructions4 Itemized Deductions, A5 Sole Proprietorships

and Farmers, C, F, SE6 Investment Income, B,

D, 47977 Rental, Passive, and At-Risk, E

8 Business Deductions9 Depreciation, 456210 Automobiles & Listed Property11 Tax Credits12 Children, College, and Family13 Retirement, Social

Security, and Medicare14 Other 1040 Topics15 IRS, Penalties, and Audits16 Where to File and Tools17 States

Business Tabs 18-3418 C Corporations, 112019 S Corporations, 1120S20 Partnerships & LLCs,106521 Estates, Trusts, and

Fiduciaries, 1041,706, 70922 Employee Benefits23 Payroll and Labor Laws,

940, 94124 Business Tools &

Worksheets25 Other Business Topics26 What’s New Business27 Starting a Business, Sch M-1/M-3

28 Sales, Dispositions, Liquidations

29 Small Business Retirement

30 Employee Health Benefits

31 Business Credits32 Tax-Exempt Orgs33 Business Audit

Strategies34 States Business Tax

Summary

For a detailed listing of topics found in each tab, visit thetaxbook.com/compare

$69


$69


Individual Forms: 1040, 2441, 4562, 4684, 4797, 6251, 8283, 8582, 8606, 8829, 8863, 8949Schedules: 1, 2, 3, A, B, C, D, E, EIC, F, H, SE

Business Forms: 1120, 1120S, 1065, 1041, 706, 709, 941, 940, 990, 1120-H, 966, 2553, 3800, 1099-MISC, 1310, 56Schedules: K-1, M-1, M-2, B-2, PH

BESTSeller

Page 15


Stay up-to-date on the latest tax law changes and industry news. Includes coverage of the American Rescue Plan Act of 2021 and the Consolidated Appropriations Act, 2021. thetaxbook.com/whatsnew

WHAT’S NEW PACKAGE

TheTaxBook

FASTTAXFACTS 10 Fold-Out Fast-Answer

Sheets

10 laminated fast-answer fold-out sheets, bound into one book. Each sheet contains popular charts found throughout all editions of TheTaxBook Series. Most sheets contain some information not found in other publications. Keep commonly referenced information, tax facts, and charts at your fi ngertips. thetaxbook.com/fasttaxfacts

10 laminated fast-answer fold-out sheets, bound into one book. Each sheet contains popular charts found throughout all editions of TheTaxBook Series. Most sheets contain some information not found in other publications. Keep commonly referenced information, tax facts, and charts at your fi ngertips.

Tab Topics

1 Individual2 1099/W-2 Roadmap3 Dependents4 Social Security & Medicare5 Military

6 International7 Business 8 Depreciation9 Repairs & Improvements10 Starting a Business

60 Pages Packed with Fast Answer Tax Charts!Each sheet is tri-folded & contains six pages.

Sheets expand in size to 24½” × 11”

Tab Topics1 What’s New Summary2 Individuals 3 Employers4 Businesses5 Retirement Plans6 Planning7 Miscellaneous Tax Provisions

Save $63 Off Retail!

$89

What’s New Early Edition $69What’s New Tax Season Edition $69Free Shipping $14


Individual 1-1

INDIVIDUAL2019TAX

YEARINDIVIDUAL PREPARATION FAST ANSWER CHARTS2019 Federal Tax Rate Schedule

Single Taxable Income $ 0 to 9,700 × 10.0% minus $ 0.00 = Tax 9,701 to 39,475 × 12.0% minus 194.00 = Tax 39,476 to 84,200 × 22.0% minus 4,141.50 = Tax 84,201 to 160,725 × 24.0% minus 5,825.50 = Tax 160,726 to 204,100 × 32.0% minus 18,683.50 = Tax 204,101 to 510,300 × 35.0% minus 24,806.50 = Tax 510,301 and over × 37.0% minus 35,012.50 = Tax

MFJ or QW Taxable Income $ 0 to 19,400 × 10.0% minus $ 0.00 = Tax 19,401 to 78,950 × 12.0% minus 388.00 = Tax 78,951 to 168,400 × 22.0% minus 8,283.00 = Tax 168,401 to 321,450 × 24.0% minus 11,651.00 = Tax 321,451 to 408,200 × 32.0% minus 37,367.00 = Tax 408,201 to 612,350 × 35.0% minus 49,613.00 = Tax 612,351 and over × 37.0% minus 61,860.00 = Tax

MFS Taxable Income $ 0 to 9,700 × 10.0% minus $ 0.00 = Tax 9,701 to 39,475 × 12.0% minus 194.00 = Tax 39,476 to 84,200 × 22.0% minus 4,141.50 = Tax 84,201 to 160,725 × 24.0% minus 5,825.50 = Tax 160,726 to 204,100 × 32.0% minus 18,683.50 = Tax 204,101 to 306,175 × 35.0% minus 24,806.50 = Tax 306,176 and over × 37.0% minus 30,930.00 = Tax

HOH Taxable Income $ 0 to 13,850 × 10.0% minus $ 0.00 = Tax 13,851 to 52,850 × 12.0% minus 277.00 = Tax 52,851 to 84,200 × 22.0% minus 5,562.00 = Tax 84,201 to 160,700 × 24.0% minus 7,246.00 = Tax 160,701 to 204,100 × 32.0% minus 20,102.00 = Tax 204,101 to 510,300 × 35.0% minus 26,225.00 = Tax 510,301 and over × 37.0% minus 36,431.00 = Tax

2019 Standard DeductionSingle or MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,200MFJ or QW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,400HOH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,350Additional age 65 or older, or blind, per person, per event:MFJ, QW, or MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,300Single or HOH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,650

Dependents. The standard deduction is the greater of $ 1,100 or earned income plus $350, up to regular standard deduction.

2019 Personal Exemption DeductionPersonal exemption deduction per person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0Qualifying relative income limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,200

Penalty for Not Having Health InsuranceEffective 2019, the penalty tax under the Affordable Care Act (ACA) for not having minimum essential health insurance coverage is zero.

2019 Standard Mileage RatesBusiness . . . . . . . . . . . . . . . . . . . . . . . 58.0¢ Depreciation . . . . . . . . . . . . . . . . . . 26.0¢Charitable . . . . . . . . . . . . . . . . . . . . . . 14.0¢ Medical and Moving . . . . . . . 20.0¢

2019 Earned Income Credit — Maximum Income Limits No Children 1 Child 2 Children 3 ChildrenMFJ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,370 . . . . . . $ 46,884 . . . . . . $ 52,493 . . . . . . . $ 55,952Single, HOH, QW.. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,570 . . . . . . $ 41,094 . . . . . . $ 46,703 . . . . . . . $ 50,162Investment income limit: $ 3,600

2019 Filing Requirements — for Most TaxpayersIf filing And at the end of 2018, Then file a return if grossstatus is: taxpayer was: income was at least:Single . . . . . . . . . . . . . . . . Under age 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,000 Age 65 or older . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,600MFJ . . . . . . . . . . . . . . . . . . . Under age 65 (both spouses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,000 Age 65 or older (one spouse) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,300 Age 65 or older (both spouses) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,600MFS . . . . . . . . . . . . . . . . . . . Any age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5HOH . . . . . . . . . . . . . . . . . . . Under age 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,000 Age 65 or older . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,600QW . . . . . . . . . . . . . . . . . . . . Under age 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,000 Age 65 or older . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,300

Social Security and Medicare TaxesMaximum earnings subject to: Social Security tax . . . . . . . . . . . . . . . . . $132,900 Medicare tax . . . . . . . . . . . . . . . . . . . . . . . . . No Limit

Social Security tax rate: Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.20% Self-employed . . . . . . . . . . . . . . . . . . . . . . . . . 12.40%

Maximum Social Security tax: Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,239.80 Self-employed . . . . . . . . . . . . . . . . . . . . $16,479.60

Medicare tax rate: Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.45% Self-employed . . . . . . . . . . . . . . . . . . . . . . . . . . 2.90%

2019 Phaseouts Based on Modified AGIItemized Deductions / ExemptionsThe phaseouts do not apply for tax years 2018 through 2025.

Traditional IRA Covered By EmployerMFJ, QW . . . . . . . . . . . . . $103,000 to $ 123,000Single, HOH . . . . . . . . . . $64,000 to $ 74,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 to $ 10,000Spouse not covered by employer . . . . . . . . . $193,000 to $ 203,000

Student Loan InterestMFJ . . . . . . . . . . . . . . . . . . . . $ 140,000 to $ 170,000Single, HOH, QW . . . $ 70,000 to $ 85,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does not qualify Roth IRA

MFJ, QW . . . . . . . . . . . . $ 193,000 to $ 203,000Single, HOH . . . . . . . . $ 122,000 to $ 137,000MFS . . . . . . . . . . . . . . . . . . . $ 0 to $ 10,000

American Opportunity CreditMFJ . . . . . . . . . . . . . . . . . . . . $ 160,000 to $ 180,000Single, HOH, QW . . . $ 80,000 to $ 90,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does not qualify Retirement Savings Contributions

Credit—AGI up to: Single, Rate MFJ HOH QW, MFS

50% $ 38,500 $ 28,875 $ 19,250 20% $ 41,500 $ 31,125 $ 20,750 10% $ 64,000 $ 48,000 $ 32,000 0% $ 64,001 $ 48,001 $ 32,001

Lifetime Learning Credit MFJ . . . . . . . . . . . . . . . . . . . . $ 116,000 to $ 136,000Single, HOH, QW . . . $ 58,000 to $ 68,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does not qualify

Child Tax Credit/Family CreditPhaseout begins at:MFJ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000Single, HOH, MFS, QW . . . . . . . . . . . . $ 200,000

Adoption Credit or ExclusionMFJ, Single, HOH, QW . . . $211,160 to $251,160

Additional Medicare Tax 0.9% additional tax on combined wages, compensation, and self-employment income above threshold amount.Filing Status Single, HOH, QW MFJ MFSThreshold Amount $200,000 $250,000 $125,000

FASTTAXFACTSIndividual 1-6

Full Retirement Age — Social SecurityA person reaches full retirement age as follows: Born prior to 1938. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 65 Born in 1938 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 65 and 2 months Born in 1939 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 65 and 4 months Born in 1940 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 65 and 6 months Born in 1941 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 65 and 8 months Born in 1942 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 65 and 10 months Born in 1943 through 1954 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 66 Born in 1955 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 66 and 2 months Born in 1956 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 66 and 4 months Born in 1957 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 66 and 6 months Born in 1958 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 66 and 8 months Born in 1959 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 66 and 10 months Born after 1959 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Age 67

Birthday on January 1. Individuals born on January 1 of any year should refer to the previous year in this chart.

3-, 5-, 7-, 10-, 15-, and 20-Year Property — Regular MACRS Half-Year Convention

YearDepreciation rate for recovery period

200DB 3-year

200DB 5-year

200DB 7-year

200DB 10-year

150DB 15-year

150DB 20-year

12345

33.33%44.4514.817.41

20.00%32.0019.2011.5211.52

14.29%24.4917.4912.498.93

10.00%18.0014.4011.529.22

5.00%9.508.557.706.93

3.750%7.2196.6776.1775.713

678910

5.76 8.928.934.46

7.376.556.556.566.55

6.235.905.905.915.90

5.2854.8884.5224.4624.461

1112131415

3.28 5.915.905.915.905.91

4.4624.4614.4624.4614.462

1617181920

2.95 4.4614.4624.4614.4624.461

21 2.231

Summary of Recovery Periods Under MACRSThese property classes are also listed under column (a) in Section B, Part III, Form 4562, Depreciation and Amortization.3-Year Property

• Tractor units for over-the-road use. • Any race horse over two years old when placed in service.

(All race horses placed in service after December 31, 2008, and before January 1, 2018, are deemed to be 3-year property, regardless of age.) 1

• Any other horse (other than a race horse) over 12 years old when placed in service.

• Qualified rent-to-own property.5-Year Property

• Automobiles, taxis, buses, and trucks.• Computers and peripheral equipment. • Office machinery (such as typewriters, calculators, and copiers). • Any property used in research and experimentation.• Breeding cattle and dairy cattle.• Appliances, carpets, furniture, etc., used in a residential rental

real estate activity.• Certain geothermal, solar, and wind energy property.• Any new (original use) machinery equipment (other than any

grain bin, cotton ginning asset, fence, or other land improvement) used in a farming business and placed in service after December 31, 2017.

7-Year Property

• Office furniture and fixtures (such as desks, files, shelving, display cases, and safes).

• Agricultural machinery and equipment (used).• Any property that does not have a class life and has not been

designated by law as being in any other class.• Certain motorsports entertainment complex property placed in

service before January 1, 2018. 1• Any natural gas gathering line original use of which commences

after April 11, 2005.• Any race horse two years old or younger placed in service after

December 31, 2017. 1

10-Year Property

• Vessels, barges, tugs, and similar water transportation equipment.

• Any single purpose agricultural or horticultural structure.• Any tree or vine bearing fruits or nuts.

15-Year Property

• Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, and bridges).

• Any retail motor fuels outlet, such as a convenience store.• Any municipal wastewater treatment plant.• Initial clearing and grading land improvements for gas utility

property.• Qualified leasehold improvement property, qualified restaurant

property, and qualified retail improvement property placed in service after 2009 and before January 1, 2018.

• Qualified improvement property placed in service after December 31, 2017 (once technical correction is made).2

20-Year Property

• Farm buildings (other than single purpose agricultural or horticultural structures).

• Municipal sewers not classified as 25-year property.• Initial clearing and grading land improvements for electric

utility transmission and distribution plants.25-Year Property

• Property that is an integral part of the gathering, treatment, or commercial distribution of water, and that, without regard to this provision, would be 20-year property.

• Municipal sewers.27.5-Year Residential Rental Property

This is any building or structure, such as a rental home, if 80% or more of its gross rental income for the tax year is from dwelling units. A dwelling does not include a unit in a hotel, motel, or other establishment where more than half the units are used on a transient basis. If the taxpayer occupies any part of the building or structure for personal use, its gross rental income includes the fair rental value of the part occupied by the taxpayer.

39-Year Nonresidential Real Property

This is IRC section 1250 property, such as an office building, store, or warehouse, that is neither residential rental property nor property with a class life of less than 27.5 years.

1 This provision is currently expired for tax years after 2017. See What’s New, Tab 1, The-TaxBook 1040 Edition/Deluxe Edition for information about late-breaking legislation.

2 Effective for 2018, qualified improvement property is 39-year property without a legisla-tive technical correction.

Business Use of Home MethodsSimplified Method Regular Method

Regular/exclusive use tests Same rules. Same rules.Maximum square footage allowed for business.

300 square feet. No maximum.

Expenses allowed $5 per square foot. Actual expenses determined and records

maintained.Depreciation deduction. No. Yes.Depreciation recapture on sale of home.

No. Yes.

Deduction cannot exceed gross income limitation.

Same rules. Same rules.

Carryover of expenses in excess of gross income limitation.

No. Yes.*

Home-related itemized deductions (i.e. mortgage interest and real estate taxes).

Claimed in full on Schedule A (Form 1040).

Allocated between Schedule A (Form 1040) and business schedule.

* Loss carryover from use of regular method in prior year may not be claimed in a year the simplified method is used. The loss is carried over until the next year the regular method is used again.

Employees. No deduction allowed. The business use of home deduction for employ-ees is suspended for tax years 2018 through 2025.

Individual 1-5

15105 Minnetonka Ind. Rd., Ste. 221, Minnetonka, MN 55345Toll Free: 866-919-5277 • www.thetaxbook.com

Copyright © 2019 Tax Materials, Inc. All Rights Reserved

Dependency Test for 2019All seven of the following tests must be met in order for a taxpayer to claim an-other person as a dependent in 2018. Test numbers 4 through 7 vary depending on whether the person is a qualifying child or a qualifying relative of the taxpayer.1) Taxpayer ineligible if a dependent test. To claim another person as a depen-


2) Married filing joint test. A person cannot be treated as a dependent if he or she files a joint return with a spouse. This rule does not apply if the joint return was filed only as a claim for refund of income tax withheld or estimated tax paid, and no tax liability would exist for either spouse if they had filed separate returns.



stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these, such as the taxpayer’s grandchild, niece, or nephew. Note: If a child meets tests 4 through 7 for more than one taxpayer, see Qualifying Child of More Than One Person, Tab 3, TheTaxBook, 1040 Edition/Deluxe Edition.

4) Relationship test. A relative of the taxpayer must be:• A son, daughter, stepchild, foster child, or a

descendant of any of these (such as a grandchild), • A brother, sister, or a son or daughter of either of

these (such as a niece or nephew),• A father, mother, or an ancestor or sibling of either

of them (such as a grandmother, grandfather, aunt, or uncle),

• A stepbrother, stepsister, stepfather, step-mother, son-in-law, daughter-in-law, fa-ther-in-law, mother-in-law, brother-in-law, or sister-in-law, or

• Any other person (other than the taxpayer’s spouse) who lived with the taxpayer all year as a member of the taxpayer’s household if the relationship does not violate local law.



6) Age test. The child must be:

• Under age 19 at the end of 2018 and younger than the taxpayer (or spouse if MFJ),

• Under age 24 at the end of 2018, a full-time student for any part of five calendar months during 2018, and younger than the taxpayer (or spouse if MFJ), or


6) Gross income test. The relative must have gross income of less than $4,150 in 2018. Gross income defined. Gross income is all income that is not exempt from tax. Gross income includes all taxable unemployment compensation and certain scholarship and fellow-

ship grants. Scholarships received by degree candidates that are used for tuition, fees, supplies, books, and equipment required for particular courses are generally not included in gross income.

7) Support test. The child cannot have provided over half of his or her own support during 2018. Note: Third-party payments and scholarships are not considered support provided by child.

7) Support test. The taxpayer must have provided over half the relative’s support in 2018. This test does not apply for persons who qualify as dependents under the children of divorced or separated parents rule, the multiple support agreements rules, or the rule for kidnapped children.


Refund StatusStatus of a taxpayer’s refund can be obtained by phone at 1-800-829-1040, or at www.irs.gov, and click on “Refund Status.” Taxpayer’s SSN, filing status, and refund amount is required to obtain information. Taxpayers should wait 24 hours from the acknowledgement of an e-filed return, or four weeks after mailing a paper return, to check on the status of a refund.

Day Care ProvidersStandard Meal and Snack Rates: 2018Continental U.S.

Breakfast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.31Lunch and Dinner (each). . . . . . . . . . . . . $ 2.46Snacks (each/up to 3) . . . . . . . . . . . . . . . . . $ 0.73

AlaskaBreakfast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.09Lunch and Dinner (each). . . . . . . . . . . . . $ 3.99Snacks (each/up to 3) . . . . . . . . . . . . . . . . . $ 1.19

HawaiiBreakfast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.53Lunch and Dinner (each). . . . . . . . . . . . . $ 2.88Snacks (each/up to 3) . . . . . . . . . . . . . . . . . $ 0.85

2019 Dependent CreditsChild Tax Credit• $2,000 per child (nonrefundable

and limited by tax liability).• Phased out at $400,000 MFJ

($200,000 all others).

Additional Child Tax Credit — Schedule 8812 (Form 1040)• $1,400 per child maximum

(refundable).• Earned income threshold is

$2,500.

Credit for Other Dependents• $500 (nonrefundable) per

qualifying dependent other than a qualifying child.

Adoption Credit/Exclusion — Form 8839• $13,810 per eligible child limit.• Phases out with MAGI $207,140–

$247,140.

Dependent Care Credit/Exclusion — Form 2441• $3,000 ($6,000 if two or more

qualifying persons) dollar limit.• No income limit.

2019 Tax Rates: Capital Gain and Dividend IncomeIf income is… Maximum

tax rate %If asset is held…

Gain from the sale of collectibles 28% More than 1 year

Taxable portion of gain on qualified small business stock (section 1202 exclusion)

28% More than 5 years

Unrecaptured section 1250 gain 25% More than 1 year

Long-term capital gain See below More than 1 year

Qualified dividend income See below More than 60 days

Taxable IncomeSingle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 to $38,600MFJ/QW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 to $77,200MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 to $38,600HOH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 to $51,700Estates and trusts. . . . . . . . . . . . . . . . . . . . . . $0 to $2,600

0%

Taxable IncomeSingle . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38,601 to $425,800MFJ/QW . . . . . . . . . . . . . . . . . . . . . . . . $77,201 to $479,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38,601 to $239,500HOH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $51,701 to $452,400Estates and trusts. . . . . . . . . . . . . . $2,601 to $12,700

15%

Taxable IncomeSingle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$425,801 and overMFJ/QW . . . . . . . . . . . . . . . . . . . . . . . . . .$479,001 and overMFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$239,501 and overHOH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$452,401 and overEstates and trusts. . . . . . . . . . . . . . $12,701 and over

20%

Short-term capital gain 37% 1 year or less

Ordinary dividend income 37% 60 days or less

Net Investment Income Tax (NIIT) 3.8% additional tax on investment income if MAGI above threshold amount

Filing status Single, HOH MFJ, QW MFS

Threshold amount $200,000 $250,000 $125,000

1040 and Small Business

1

Individual 1-1FASTTAXFACTS

Federal Tax Rate Schedule Single Taxable Income $ 0 to 9,875 × 10.0% minus $ 0.00 = Tax 9,876 to 40,125 × 12.0% minus 197.50 = Tax 40,126 to 85,525 × 22.0% minus 4,210.00 = Tax 85,526 to 163,300 × 24.0% minus 5,920.50 = Tax 163,301 to 207,350 × 32.0% minus 18,984.50 = Tax 207,351 to 518,400 × 35.0% minus 25,205.00 = Tax 518,401 and over × 37.0% minus 35,573.00 = Tax

Married Filing Jointly (MFJ) or Qualifying Widower (QW) Taxable Income

$ 0 to 19,750 × 10.0% minus $ 0.00 = Tax 19,751 to 80,250 × 12.0% minus 395.00 = Tax 80,251 to 171,050 × 22.0% minus 8,420.00 = Tax 171,051 to 326,600 × 24.0% minus 11,841.00 = Tax 326,601 to 414,700 × 32.0% minus 37,969.00 = Tax 414,701 to 622,050 × 35.0% minus 50,410.00 = Tax 622,051 and over × 37.0% minus 62,851.00 = Tax Married Filing Separately (MFS) Taxable Income $ 0 to 9,875 × 10.0% minus $ 0.00 = Tax 9,876 to 40,125 × 12.0% minus 197.50 = Tax 40,126 to 85,525 × 22.0% minus 4,210.00 = Tax 85,526 to 163,300 × 24.0% minus 5,920.50 = Tax 163,301 to 207,350 × 32.0% minus 18,984.50 = Tax 207,351 to 311,025 × 35.0% minus 25,205.00 = Tax 311,026 and over × 37.0% minus 31,425.50 = Tax Head of Household (HOH) Taxable Income $ 0 to 14,100 × 10.0% minus $ 0.00 = Tax 14,101 to 53,700 × 12.0% minus 282.00 = Tax 53,701 to 85,500 × 22.0% minus 5,652.00 = Tax 85,501 to 163,300 × 24.0% minus 7,362.00 = Tax 163,301 to 207,350 × 32.0% minus 20,426.00 = Tax 207,351 to 518,400 × 35.0% minus 26,646.50 = Tax 518,401 and over × 37.0% minus 37,014.50 = Tax

Standard DeductionSingle or MFS . . . . . . . . . . . . . $12,400MFJ or QW . . . . . . . . . . . . . . . . . $24,800HOH . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,650

Additional age 65 or older, or blind, per person, per event:MFJ, QW, or MFS . . . . . . . . . . $1,300Single or HOH . . . . . . . . . . . . . . . $1,650

Dependents. The standard deduction is the greater of $ 1,100 or earned income plus $350, up to regular standard deduction.

Personal Exemption DeductionPersonal exemption deduction per person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0Qualifying relative gross income limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,300

Kiddie TaxApplies to children with unearned income over $2,200.

Earned income. Up to $12,400 not taxed. Over $12,400 taxed at child’s rate.

Unearned income. Taxed at parents’ tax rates if over $2,200.

Filing Requirements — for Most TaxpayersIf filing And at the end of 2020, Then file a return if grossstatus is: taxpayer was: income was at least:Single . . . . . . . . . . . . . . . . Under age 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,400 Age 65 or older . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,050MFJ . . . . . . . . . . . . . . . . . . . Under age 65 (both spouses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,800 Age 65 or older (one spouse) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,100 Age 65 or older (both spouses) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,400MFS . . . . . . . . . . . . . . . . . . . Any age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5HOH . . . . . . . . . . . . . . . . . . . Under age 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,650 Age 65 or older . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,300QW . . . . . . . . . . . . . . . . . . . . Under age 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,800 Age 65 or older . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,100

Social Security and Medicare TaxesMaximum earnings subject to: Social Security tax . . . . . . . . . . . . . . . . . $137,700 Medicare tax . . . . . . . . . . . . . . . . . . . . . . . . . No Limit

Social Security tax rate: Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.20% Self-employed . . . . . . . . . . . . . . . . . . . . . . . . . 12.40%

Maximum Social Security tax: Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,537.40 Self-employed . . . . . . . . . . . . . . . . . . . . $17,074.80

Medicare tax rate: Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.45% Self-employed . . . . . . . . . . . . . . . . . . . . . . . . . . 2.90%

Phaseouts Based on Modified AGIStudent Loan InterestMFJ . . . . . . . . . . . . . . . . . . . . $ 140,000 to $ 170,000Single, HOH, QW . . . $ 70,000 to $ 85,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does not qualify

Traditional IRA-Covered By EmployerMFJ, QW . . . . . . . . . . . . . $104,000 to $ 124,000Single, HOH . . . . . . . . . . $65,000 to $ 75,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 to $ 10,000Spouse not covered by

employer . . . . . . . . . $196,000 to $ 206,000American Opportunity CreditMFJ . . . . . . . . . . . . . . . . . . . . $ 160,000 to $ 180,000Single, HOH, QW . . . $ 80,000 to $ 90,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does not qualify

Roth IRAMFJ, QW . . . . . . . . . . . . $ 196,000 to $ 206,000Single, HOH . . . . . . . . $ 124,000 to $ 139,000MFS . . . . . . . . . . . . . . . . . . . $ 0 to $ 10,000

Lifetime Learning CreditMFJ . . . . . . . . . . . . . . . . . . . . $ 118,000 to $ 138,000Single, HOH, QW . . . $ 59,000 to $ 69,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does not qualify

Retirement Savings Contributions Credit—AGI up to: Single,Rate MFJ HOH QW, MFS

50% $ 39,000 $ 29,250 $ 19,500 20% $ 42,500 $ 31,875 $ 21,250 10% $ 65,000 $ 48,750 $ 32,500 0% $ 65,001 $ 48,751 $ 32,501

Child Tax Credit/Credit for Other Dependents. Phaseout begins at:MFJ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000Single, HOH, MFS, QW . . . . . . . . . . . . $ 200,000

Tuition/Fees DeductionMFJ . . . . . . . . . . . . . . . . . . . . $ 130,000 to $ 160,000Single, HOH, QW ...$ 65,000 to $ 80,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does not qualify

Adoption Expense Credit or ExclusionMFJ, Single,

HOH, QW . . . . . . . . $ 214,520 to $ 254,520

Additional Medicare Tax The additional Medicare tax is a 0.9% additional tax on combined wages, compensa-tion, and self-employment income above threshold amount.Filing Status Threshold AmountSingle, HOH, QW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000MFJ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $125,000

Employee. An employer must withhold the additional Medicare tax on wages or compensation it pays to an individual in excess of $200,000 in a calendar year, without regard to the individual’s filing status or wages paid by another employer.

INDIVIDUAL PREPARATION FAST ANSWER CHARTS 2021TAX

YEAR

INDIVIDUAL

Individual 1-6

Business Use of Home MethodsSimplified Method Regular Method

Regular/exclusive use tests. Same rules. Same rules.Maximum square footage allowed for business.

300 square feet. No maximum.

Expenses allowed. $5 per square foot. Actual expenses determined and records

maintained.Depreciation deduction. No. Yes.Depreciation recapture on sale of home.

No. Yes.

Deduction cannot exceed gross income limitation.

Same rules. Same rules.

Carryover of expenses in excess of gross income limitation.

No. Yes.*

Home-related itemized deductions (i.e., mortgage interest and real estate taxes).

Claimed in full on Schedule A

(Form 1040), subject to limitation.

Allocated between Schedule A (Form 1040) and business schedule.

* Loss carryover from use of regular method in prior year may not be claimed in a year the simplified method is used. The loss is carried over until the next year the regular method is used again.

Employees. No deduction allowed. The business use of home deduction for employ-ees is suspended for tax years 2018 through 2025.

Schedule E (Form 1040) DetailsAt-risk limits. Losses are allowed only up to the amount of the taxpayer’s risk of financial loss from the activity.Passive activity loss limits. A taxpayer’s passive activity losses are allowed only up to the amount of passive activity gains for the year.Passive activities. Trade or business activities where the taxpayer does not ma-terially participate (such as an interest in a limited partnership). Rental activities are passive by statute, with the exception of real estate professionals and specific activities that are considered nonrental by regulation.Passive losses in year of disposal. A taxpayer can use accumulated passive activity losses to offset the passive income from the sale of a property, regardless of wheth-er the entity being sold created all losses being utilized.Rental property considered nonrental. Certain activities, such as short term rentals, rentals provided along with significant services, and activities where the rental is incidental to nonrental activities are not considered rental activities for the purposes of passive loss rules and are therefore not passive activities by default.Real estate professionals. Taxpayers who performed more than half of all their pro-fessional services during the year in a real property trade or business, spent at least 750 hours in the activity during the year, and materially participated in the activity.Real estate dealers. Income of a real estate dealer is subject to SE tax. A real estate dealer is a person whose primary business is to sell real estate to customers.

How to Classify Rental Property for Tax Treatment

Personal use for more than the greater of 14 days or 10% of days rented?Yes No

Rented for 14 days or less?Yes No

Personal residence.* Mixed-use property. Rental property.**

* Rental income not reported, expenses not allowed, report real estate taxes and qualified mortgage interest on Schedule A (Form 1040).

** Any rental income must be reported even for periods of 14 days or less.

Rental Real Estate Loss for Individuals

Did the taxpayer actively participate in and own 10% or more of rental real

estate activity?No

Regular passive loss limits apply.

Yes

Modified AGI greater than $100,000? ($50,000 MFS)? No

Up to $25,000 of the rental loss is allowed against non-passive income.

Yes $25,000 loss allowance is reduced by 50% of modified AGI over $100,000,

and phased out completely at $150,000 ($75,000 MFS).


Real estate professional?Yes No

Not subject to passive loss limits Subject to passive loss limits

Was the rental income from an activity as a

real estate dealer? No Yes

Not subject to SE tax Subject to SE tax

Partnerships

Loss General Partner

Guaranteed payments and/or distributive share of income

Limited Partner Loss

Guaranteed Distributivepayments share of income

Subject to SE tax Not subject to SE tax

Material participation?Yes No

Not subject to passive loss limits

Working interest in oil or gas property where the partner has unlimited liability?Yes No


Deducting Shareholder’s Suspended Pass-Through LossesCause of Suspended Loss Treatment at Liquidation

Basis limitation. Permanently lost.At-risk limitation. Offset gain recognized from disposition of

stock.Any remaining loss carried over indefinitely.

Passive activity rules. Suspended passive losses allowed.Exception: Loss is not allowed on the sale to a related party.

Excess business loss limitation. Treated as NOL carried over to next year.

Standard Mileage RatesBusiness . . . . . . . . . . . . . . . . . . . . 57.5¢ Medical and Moving . . . . . . . . . . . . . . . 17.0¢Charitable . . . . . . . . . . . . . . . . . . . 14.0¢ Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . 27.0¢

Per Diem Rates—Continental U.S. (CONUS)Effective: 10/1/20–9/30/21 10/1/19–9/30/20M&IE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $55 . . . . . . . . . . . . . . . . . . . . . $55Lodging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $96 . . . . . . . . . . . . . . . . . . . . . $96

Estate and Gift TaxGift tax annual exclusion per donee $15,000Gift tax annual exclusion to noncitizen spouse $157,000Estate and gift tax unified exclusion per decedent $11,580,000

Individual 1-5

Tax Rates: Capital Gain and Dividend IncomeIf income is… Maximum

tax rate %If asset is held…

Gain from the sale of collectibles 28% More than 1 year

Taxable portion of gain on qualified small business stock (section 1202 exclusion)

28% More than 5 years

Unrecaptured section 1250 gain 25% More than 1 year

Long-term capital gain See below More than 1 year

Qualified dividend income See below More than 60 days

Taxable IncomeSingle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 to $40,000MFJ/QW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 to $80,000MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 to $40,000HOH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 to $53,600Estates and trusts. . . . . . . . . . . . . . . . . . . . . . $0 to $2,650

0%

Taxable IncomeSingle . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,001 to $441,450MFJ/QW . . . . . . . . . . . . . . . . . . . . . . . . $80,001 to $496,600MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,001 to $248,300HOH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $53,601 to $469,050Estates and trusts. . . . . . . . . . . . . . $2,651 to $13,150

15%

Taxable IncomeSingle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$441,451 and overMFJ/QW . . . . . . . . . . . . . . . . . . . . . . . . . .$496,601 and overMFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$248,301 and overHOH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$469,051 and overEstates and trusts. . . . . . . . . . . . . . $13,151 and over

20%

Short-term capital gain 37% 1 year or less

Ordinary dividend income 37% 60 days or less

Household Employee Filing Requirements ChartIf the taxpayer… Then…

Pays cash wages of $2,200 in 2020 to any one household employee (do not count wages paid to spouse, child under age 21, parent, or a nonprofessional employee under age 18 at any time in 2020).

Withhold and pay Social Security and Medicare taxes on all wages, including the first $2,200.

Pays cash wages of $1,000 or more in any calendar quarter of 2019 or 2020 to household employees (do not count wages paid to spouse, child under age 21, or parent).

Must pay federal unemployment tax (FUTA). Wages over $7,000 a year per employee are not taxable. The employer may also owe state unemployment tax.

File Schedule H (Form 1040), Household Employment Taxes, with tax return.

Net Investment Income Tax 3.8% additional tax on investment income if MAGI above threshold amount.

Filing Status Single, HOH MFJ, QW MFS

Threshold Amount $200,000 $250,000 $125,000

Net Investment Income: Income Not Net Investment Income:

• Interest.• Dividends.• Capital gains from sale of

stock, bonds, mutual funds, investment real estate.

• Capital gain distributions from mutual funds.

• Rental and royalty income.• Nonqualified annuities.• Business income from passive

activities.

• Wages.• Unemployment compensation.• Operating income from a nonpassive

business.• Social Security benefits.• Alimony.• Tax-exempt interest.• Self-employment income.• Alaska Permanent Fund Dividends.• Distributions from qualified plans or IRAs.

15105 Minnetonka Ind. Rd., Ste. 221, Minnetonka, MN 55345866-919-5277 • www.thetaxbook.com

Copyright © 2020 Tax Materials, Inc.All Rights Reserved

Tax Treatment of Stock OptionsStatutory Stock Option (ISO) 1 Statutory Stock Option (ESPP) Nonstatutory Stock Option

Income subject to…2 Regular tax Regular tax Regular tax

At Grant Date Not subject to tax. Not subject to tax. Not subject to tax unless FMV is readily determined.

At Exercise Date Not subject to tax.Note: Taxpayer will generally receive Form 3921, Exercise of an Incentive Stock Option Under Section 422(b). Use Form 3921 to determine basis when ISO is sold.

Not subject to tax.Note: Taxpayer will generally receive Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c). Use Form 3922 to determine basis when ESPP is sold.

Substantially vested stock: An amount equal to FMV of option minus the exercise price is treated as compensation (generally reported as code V, box 12, Form W-2).Restricted stock: Defer recognition until substantially vested.4

At Date of Sale (Holding period met) 3

• Income subject to capital gain or loss treatment.

• Basis equals exercise price.

• For options granted at a discount (less than FMV), the difference between the option price and the FMV of the stock at the grant date is treated as compensation (Form W-2).

• Excess gain is capital gain.• Loss is a capital loss.

• Holding period requirement not applicable.

• Income is subject to short-term or long-term capital gain or loss treatment.

• Basis equals the amount treated as compensation plus exercise price.

• A same-day exercise/sell transaction typically generates compensation equal to the FMV of the option minus the exercise price and a short-term loss equal to the broker transaction fees.

At Date of Sale (Holding period not met) 3

Gain on sale: An amount equal to the FMV of the option minus the exercise price is treated as compensation (Form W-2); excess gain is capital gain.Loss on sale: The loss is a capital loss.

• An amount equal to the FMV (at exercise date) of the option minus the exercise price is treated as compensation (Form W-2).

• Basis in the stock is increased by the amount included in compensation. Difference between the increased basis and the selling price is a capital gain or loss.

1 AMT adjustment may be required at exercise date and date of sale, unless stock is exercised and sold in same year. 2 Stock options exercised or restricted stock units (RSUs) settled after December 31, 2017, are eligible for a deferral of income election. 3 Required holding period for statutory stock options is one year from the exercise date and two years from the grant date.4 If employee made IRC section 83(b) election, restricted stock is treated the same as substantially vested stock. If no election made, the excess of the stock’s FMV at the

vesting date over the option price when the stock vests is treated as compensation (on Form W-2).

$69


Early Edition$69

Tax Season Edition $69

Edition CoverageThrough

Start Ship Date Content Includes Complete Coverage of New

Tax Laws

Early Edition 7/1/2021 8/1/2021

Content includes changes to individual credits, payroll and employer tax credits, Paycheck Protection Program, and more.

Complete coverage of the American Rescue Plan Act of 2021, the Consolidated Appropriations Act, 2021, and Revenue Procedures, Notices, Regulations, and Other IRS Guidance.

Tax Season Edition

1/1/2022 2/1/2022Includes all topics listed above updated through 1/1/2022 and any new laws and guidance issued.


TheTaxBook

ALL STATES EDITION

Fast answers to each state’s unique income tax rules. A must have book when preparing out-of-state returns. thetaxbook.com/allstates

California is fi lled with complicated tax code. The California Edition answers your questions about state tax law for individuals, corporations, partnerships, LLCs, estates, and trusts. thetaxbook.com/california

570+ PAGES

Fast answers to each state’s unique income tax rules. A must have book when preparing out-of-state returns.

California is fi lled with complicated tax code. The California Edition answers your questions about state tax law for individuals, corporations, partnerships, LLCs, estates, and trusts.

– Jay Weller Zite, EA, Skokie, IL

Forms: 540, 540NR, 100, 100S, 541, 565, 568Schedules: CA (540/540NR), D, K-1, P, R, S, X

CALIFORNIA EDITIONCalifornia is fi lled with complicated tax code. The California Edition

360+ PAGES

• 2021 Tax Rates• Tax Tables• Filing Requirements• Resident, Part-Year Resident, and

Nonresident Filing Information• Additions• Subtractions• Adjustments• Exemptions• Credits

• Pension Exclusions• Underpayment Penalties• Filing Addresses• Filing Deadlines• School District Codes• Contact Information• Estimated Tax• Reciprocal Agreements• Property Tax Credits/Refunds

Topics by State

1 What’s New and Federal Conformity

2 2021 California Tax Tables3 Residency and Filing

Requirements 4 Adjustments, Deductions, and

Exemption Credits5 Retirement and Social Security6 Individual and Business Tax

Credits

7 Depreciation, Amortization and Basis

8 Corporations9 Partnerships, LLCs, Estates and

Trusts10 AMT and Miscellaneous 11 Extensions, Penalties, and

Estimated Tax12 Audits, Protests, Appeals and

Contacts

Tab Topics

“Th e All States “Th e All States

Edition—Answers Edition—Answers

to state issues all in to state issues all in

one place!”one place!”

$99

$69




DEPRECIATION

TheTaxBook

250+ PAGES

$

TIME

Detailed coverage of Social Security, Medicare, Medicaid, and other programs. Fast answers to frequently asked retirement, disability, and Medicare questions. thetaxbook.com/socialsecuritymedicare

Comprehensive coverage of depreciation, amortization, and depletion pertaining to business property and other tangible assets. thetaxbook.com/depreciation

Forms: SSA-1099, RRB-1099, W-4V, SS-5, 4029, SSA-561, SSA-3441

Forms: 4562, 3115, 4797, 8594, 8949, 6252, 8824, 8827, 8829, 8866Schedules: T (Timber), D (Form 1040), F (Form 1040)

SOCIAL SECURITY & MEDICAREDetailed coverage of Social Security, Medicare, Medicaid, and other

250+ PAGES

1 Social Security Eligibility2 Social Security Benefits3 Social Security Taxation and

Planning4 Disability5 Medicare & Supplemental

Insurance

6 Supplemental Security Income (SSI)

7 Survivors, Spouses, and Children8 Medicaid and CHIP9 Long-Term Care10 Veterans Benefits11 Appeals

Tab Topics

1 What’s New and Depreciation Basics

2 Section 179 and Special Depreciation

3 MACRS Depreciation 4 MACRS Depreciation Tables5 Listed Property and Automobiles6 Real Property

7 Amortization and Intangible Assets8 Dispositions, Sales, and

Depreciation Recapture9 Like-Kind Exchanges & Involuntary

Conversions10 Depletion11 Depreciation Changes and Errors

Tab Topics

- Damas Lane, Las Cruces, NM

“Th eTaxBook is well organized “Th eTaxBook is well organized and very useful.”and very useful.”

$69

$69




WebLibrary

Affordable and fast online tax research! Having the most up-to-date tax information at your fi ngertips is critical. Find information fast, with well-written and easy-to-understand explanations and examples. Save time and money. thetaxbook.com/weblibrary

Subscription Term: Receive immediate access. Subscription valid through 12/1/21. *Add Users: Add up to 4 users to your WebLibrary or WebLibrary Plus subscription.

TheTaxBook & More Online!

$108 Off Retail Value

WebLibrary1st User

$159

WebLibrary Add Users$99 per user*

$471 Off Retail Value

WebLibrary Plus Add Users$129 per user*

WebLibrary Plus1st User

$279

THETAXBOOK SERIES WEBLIBRARY WEBLIBRARY

PLUS

Deluxe Edition Plus ✓ ✓

Deluxe Supplement - NEW! ✓ ✓

All States Edition ✓ ✓

California Edition ✓

Depreciation ✓

Social Security & Medicare ✓

What’s New Early Edition ✓

What’s New Tax Season Edition ✓

Occupation & Oddities ✓

FastTaxFacts ✓

Tax Industry News ✓ ✓

Tools for Tax Pros ✓ ✓

TheTaxBook Archives ✓ ✓

GOVERNMENTDOCUMENTS WEBLIBRARY WEBLIBRARY

PLUS

Publications ✓ ✓

Forms & Instructions ✓ ✓

Internal Revenue Code ✓

Treasury Regulations ✓

Court Cases ✓

Letter Rulings ✓

Revenue Procedures ✓

Revenue Rulings ✓

Notices ✓

Announcements ✓

RETAILVALUE

$99

$69

$99

$69

$69

$69

$69

$69

$69

$69

$750

BESTSeller

$750RetailValue!

“I love the WebLibrary. When clients ask me “I love the WebLibrary. When clients ask me a question, the WebLibrary directs me to the a question, the WebLibrary directs me to the information quickly.” information quickly.” – Renee Kroll, Waikoloa, HI

ONLINE ONLY

WebLibrary Subscription Comparison

• TheTaxBook Online: Same content as the printed books.

• Easy to Search: Find answers fast!

• Up-To-Date Content: Updated to refl ect new legislation and the latest information released from the IRS.

• PDF Format: Print and/or email pages to your clients.

• Access Anywhere: Available anywhere you have internet.

• Use Any Device: Computer, iPad, smartphone, or tablet.

• Bookmarks & History: Find previously viewed documents fast.

• TheTaxBook Archives: Access previous years’ editions.

WebLibrary

TheTaxBook

2009 to2020

Archives

2021 Editions

WEBLIBRARY FEATURES

FREE ONLINE CPE HOURS WITH EACH USER PURCHASED! SEE PAGE 14

Tab 7: Seniors and Taxpayers with DisabilitiesSocial Security benefits, disability insurance benefits, work-man’s compensation benefits, and long-term care issues.

Tab 4: Contractors and ConstructionCommon expenses that can be deducted and common ex-penses that must be capitalized, cost of goods sold, inventory valuation methods, and special accounting methods for long-term construction contracts.

Tab 1: High Income and AMTEmployee stock options, backdoor Roth IRA, capital gains, tax-exempt investments, qualified tuition plans, state and local taxes limitation, home mortgage interest limitation, estate tax, additional Medicare tax, net investment income tax, and alter-native minimum tax. Tab 9: Crowdfunding

A presentation of tax rules that apply when determining how to treat transactions related to crowdfunding campaigns.

Tab 5: MinistersParsonage housing allowance rules, self-employment income and expenses, employee income and expenses, tax-exempt income allocation of expenses, and vow of poverty rules.

Tab 8: Divorced and Separated TaxpayersTopics include alimony, child support, property settlements, information about the effects of divorce decrees, and qualified domestic relations orders (QDROs).

Tab 11: Public Safety PersonnelTax issues specific to public safety personnel including survi-vor, death or disability benefits, compensation, deductions for work related expenses, travel expenses, insurance premiums, and early distributions from retirement plans.

Tab 2: MilitaryCombat zone income reporting and exclusions, extensions and deferrals, principal residence purchase and sale rules, military reservists, and foreign earned income exclusion rules.

Tab 12: Household EmployeesInformation specific to household employees including how to determine if an individual has a household employee, employ-ment tax issues, and reporting.

Tab 3: Truckers and Transportation IndustrySpecial per diem rules for transportation workers, heavy ve-hicle excise tax for truckers, common repairs for truckers and whether they must be capitalized as improvements or deducted as repairs.

Tab 10: Death of a TaxpayerTax issues related to the death of a taxpayer including final filing requirements, income and deductions in year of death, estate income tax return, estate tax return, gift tax return, dis-tributions to beneficiaries, and a comprehensive example.

Tab 6: GamblingGambling as a business compared to gambling for recreation, and gambling loss rules.

Tab 13: Foreign Tax IssuesTopics include resident and nonresident aliens, dual-status aliens, nonresident spouse, students, teachers, trainers, U.S. citizens and resident aliens abroad, tax treaties, Foreign Tax Credit and deduction, foreign asset reporting, FBAR, Form 8938, and Form 3520.

TAX YEAR 2021FEDERAL TAX COMPLIANCE FOR

INDIVIDUALS & SMALL BUSINESS

OCCUPATIONS & ODDITIES

AvailableOnline Only

High Income & AMT, Military, Truckers and Transportation Industry, Contractors & Construction, Ministers, Gambling, Seniors & Taxpayers With Disabilities, Divorced and Separated Taxpayers, Crowdfunding, Death of a Taxpayer, Public Safety Personnel, Household Employees, Foreign Tax Issues

OCCUPATIONS & ODDITIESWEBLIBRARY PLUS EXCLUSIVE!

WEBLIBRARY NAVIGATIONON PAGES 8-9!


WebLibrary WEBLIBRARY NAVIGATION

Library Search:Receive instant results for keyword searches. Search all libraries or search the library of your choice. As you type in the search box, search suggestions appear.

TheTaxBook Index:Click on a letter to display a drop down box containing index references for TheTaxBook.

Go right to a tab.Click and go!

Select TheTaxBook: Quickly switch between books.

TheTaxBook Archives: In December, when the 2021 Tax Year Editions are released, you will still have access to the 2009 – 2020 Editions of TheTaxBook.Government Documents: Up-to-date library of information released by the IRS. Easy to search. Bookmark commonly used documents.

History and Bookmarks: Find previously viewed documents fast! Create and name bookmarks, to fi nd documents quickly for future reference.

1

2

3

4

5

6

7

2 SPECIAL OFFERS WITH WEBLIBRARY PLUS INCLUDED

BESTSellers

JACOBSPECIALBUNDLE

Deluxe Edition Plus Pg 2 $99WebLibrary Plus 1st User Pg 7 $279Client Handouts Pg 10 $ 1498 Online CPE Hours Pg 12 $119Free Shipping $7Total Retail Value $653

Deluxe Edition Plus Pg 2 $99WebLibrary Plus 1st User Pg 7 $2798 Online CPE Hours Pg 12 $119Free Shipping $7Total Retail Value $504

Save $155Off Retail!

ONLY

$349Save $204Off Retail!

ONLY

$449

Add a User for Only $149!Includes Deluxe Edition Plus, WebLibrary Plus Add User, 2 Online CPE Hours & Free Shipping ($290 Retail Value!)

Add a User for Only $149!Includes Deluxe Edition Plus, WebLibrary Plus Add User, 2 Online CPE Hours & Free Shipping ($290 Retail Value!)

All of our b t sellers in one bundle! “Great Value “Great Value

on Great on Great Products!”Products!”

“Th e WebLibrary is the best source for fast answers and confi rmation of what is curr ent.”“Th e WebLibrary is the best source for fast answers and confi rmation of what is curr ent.”William S. Thompson, CPA, Fairport, NY

Deluxe Edition & Supplement

TheTaxBook Archives Previous Tax Year Editions of TheTaxBook

Tax Materials, Inc. | 866-919-5277 | [email protected] | Privacy Statement

Tax Charts and WebLibrary Guide

Navigation Video | Send Feedback | Subscription Management | Logout

Index ZYXWVUTSRQPONMLKJIHGFEDCBA#

Deluxe Edition Plus Front Cover / (Inside Cover) Deluxe Supplement Front Cover / (Inside Cover)

Tab 1 What’s New Tab 22 Employee Benefi ts

Tab 2 Federal Tax Table and EIC Table Tab 23 Payroll and Labor Laws, 940, 941

Tab 3 1040 Line Instructions Tab 24 Business Tools and Worksheets

Tab 4 Itemized Deductions, A Tab 25 Other Business Topics

Tab 5 Sole Proprietorships and Farmers, C, F, SE Tab 26 What’s New Business

Tab 6 Investment Income, B, D, 497 Tab 27 Starting a Business, Sch M-1/M-3

Tab 7 Rental, Passive, and At-Risk, E Tab 28 Sales, Dispositions, Liquidations

Tab 8 Business Deductions Tab 29 Small Business Retirement

Tab 9 Depreciation, 4562 Tab 30 Employee Health Benefi ts

Tab 10 Automobiles and Listed Property Tab 31 Business Credits

Tab 11 Tax Credits Tab 32 Tax-Exempt Orgs

Tab 12 Children, College, and Family Tab 33 Business Audit Strategies

Tab 13 Retirement and Employee Benefi ts Tab 34 States Business Tax Summary

Tab 14 Other 1040 Topics Tab 35 Daycare Providers

Tab 15 IRS, Penalties, and Audits Tab 36 Direct Sellers

Tab 16 Worksheets and Where to File Tab 37 Employee Stock Options

Tab 17 States Tab 38 Farmers, Ranchers, and Hobbies

Tab 18 C Corporations, 1120 Tab 39 Virtual Currency

Tab 19 S Corporations, 1120S Tab 40 Real Estate and Rental Activities

Tab 20 Partnerships and LLCs, 1065 Tab 41 Restaurants

Tab 21 Estates, Trusts, and Fiduciaries, 1041, 706, 709 Tab 42 FastTaxFacts Inserts

Deluxe Edition Plus Back Cover / (Inside Cover) Deluxe Supplement Back Cover / (Inside Cover)

Deluxe & SupplementAll StatesCalifornia EditionDepreciationSS & MedicareWhat’s New EditionOccupations & OdditiesFastTaxFactsTax Industry NewsTools for Tax ProsTheTaxBook Archives

TheTaxBook Series

Government DocumentsPublicationsForms & InstructionsInternal Revenue CodeTreasury RegulationsCourt CasesLetter Rulings

Revenue Rulings

Bulletins (IRB)

Revenue Procedures

Notices

Manual (IRM)

Search ...AllCategory

HomepageHomepage

1

5

3

2

6

4NAVIGATION

Announcements

HistoryBookmarks

History and Bookmarks 7


Home Book Tabs Bookmark Page 8-1View HTML8-1< Previous PagePrint Tab Next Page > Jump to Page

WebLibraryWEBLIBRARY NAVIGATION

5

2

4

6

3

1

PDF FormatTheTaxBook looks like the printed edition. Scroll page to page with ease.

Fast Navigation: Go page-to-page or tab-to-tab.

Bookmarks: Set bookmarks for frequently referenced pages for quick access.

Print/Save: Print or save pages. Or click Print Tab to print or save the entire tab.

Updated Pages: We update TheTaxBook to reflect tax law changes.

Tab Contents: Go right to a tab in TheTaxBook and click on a page from the tab contents section.

Cross References: Linked to government documents. (Form 6251 example).

1

2

3

4

5

6

Dan Dannis, Costa Mesa, CA

“The WebLibrary is very “The WebLibrary is very user friendly and easy to user friendly and easy to

navigate.”navigate.”

“The TaxBook and Web Library are my “go to” resources during “The TaxBook and Web Library are my “go to” resources during tax season. The WebLibrary search function is especially tax season. The WebLibrary search function is especially

quick when a client is sitting at my desk.”quick when a client is sitting at my desk.”Lee Richardson, Orange Park, FL

Page updates look like this.

FIND INFORMATION FAST WITH TTB WEBLIBRARY

Change FormatSwitch from PDF to HTML

for viewing on a tablet / phone.

NAVIGATION


Use handouts to explain tax concepts to your clients, promote your practice, and help your clients stay organized. Handouts cover a huge variety of tax-related subjects and are written in an easy-to-read format your clients will appreciate. Build customer loyalty and keep your name in front of your clients year round! thetaxbook.com/handouts

JIM USES CLIENT HANDOUTS TO EXPLAIN TAX CONCEPTS

BOB DOESN‛T USE CLIENT HANDOUTS TO EXPLAIN TAX CONCEPTS

100+ Customizable Client Handouts! Tax Brochures, Planning Tips, Newsletters, and Organizers

Subscription Details: Receive immediate access. Subscription valid through 12/1/22. Guide Start Ship Date: 12/15/21

$149

HandoutsClient

If you pay tuition, fees, and other costs for attendance at an eligible educational institution for yourself, your spouse, or your dependent, you may be able to take ad-

You can claim more than one education benefit in a tax year as long as you do not use the same expenses for

Qualified expenses used to claim education benefits can also be used to eliminate the 10% penalty

For each student, you can elect for any year only one of the credits. For example, if you elect to claim the Ameri-can Opportunity Credit for the student in 2019, you can-not use that same student’s qualified education expens-

Deductions reduce the amount of income subject to in-come tax. Deductions for education expenses include:Student loan interest deduction up to $2,500 from gross income. Income limitations apply.Business deduction on Schedule C or F. You can de-duct the cost of education related to the business or

Education Tax CreditsTax credits reduce the amount of income tax you may have to pay. Income limitations apply. The education credits are claimed on Form 8863, Education Credits(American Opportunity and Lifetime Learning Credits).

Education Tax Benefits • American Opportunity Credit, $2,500 maximum per student per year.• Lifetime Learning Credit, $2,000 maximum per tax return per year.

Income LimitsThe American Opportunity Credit is phased out at mod-ified AGI between $80,000 and $90,000 ($160,000 and $180,000 MFJ) in 2019.The Lifetime Learning Credit is phased out at modified AGI between $58,000 and $68,000 ($116,000 and $136,000 MFJ) in 2019.

Penalty-Free IRA DistributionsIf you withdraw money from your IRA before you are age 59½, you are generally subject to a penalty of 10% of the distribution, in addition to any tax that may be due on the distribution.• The 10% penalty does not apply to traditional IRA or Roth IRA withdrawals, if you use the money to pay qualified education expenses for yourself, spouse, or for any child or grandchild of yourself or your spouse.• Qualified education expenses include tuition, fees, books, supplies, equipment, and special needs servic-es required for enrollment or attendance at an eligible educational institution. Room and board for students enrolled at least half-time in a degree or certificate program may also qualify.

• Reduce qualified expenses by scholarships and other tax-free assistance the student receives, but not by gifts or inheritances.

Education Tax Benefits2019

TAX YEAR

Portrait

TAX OFFICE123 TAX PREP LANETAX CITY, MN 55555

Education Tax CreditsTax credits reduce the amount of income tax you may have to pay. Income limitations apply. The education credits are claimed on Form 8863, (American Opportunity and Lifetime Learning Credits).

Education Tax CreditsTax credits reduce the amount of income tax you may have to pay. Income limitations apply. The education credits are claimed on Form 8863, (American Opportunity and Lifetime Learning Credits).

Education Tax CreditsTax credits reduce the amount of income tax you may

Education Tax Benefits

2019TAX YEAR

TAX OFFICE123 TAX PREP LANE

TAX CITY, MN 55555

If you pay tuition, fees, and other costs for attendance at an eligible educational institution for yourself, your

Education Tax BenefitsIf you pay tuition, fees, and other costs for attendance at an eligible educational institution for yourself, your




Deductions reduce the amount of income subject to income tax. Deductions for education expenses include:Student loan interest deduction up to $2,500 from gross income. Income limitations apply.Business deduction on Schedule C or F. You can deduct the cost of education related to the business or farm activity.

gross income. Income limitations apply.Business deduction on Schedule C or F. You can deduct the cost of education related to the business or farm activity.

gross income. Income limitations apply.Business deduction on Schedule C or F. You can deduct the cost of education related to the business or

gross income. Income limitations apply.Business deduction on Schedule C or F. You can deduct the cost of education related to the business or

gross income. Income limitations apply.Business deduction on Schedule C or F. You can de

farm activity.farm activity.

Deductions reduce the amount of income subject to income tax. Deductions for education expenses include:Student loan interest deduction up to $2,500 from





farm activity.farm activity.

If you pay tuition, fees, and other costs for attendance at an eligible educational institution for yourself, your spouse, or your dependent, you may be able to take advantage of one or more of the education tax benefits.You can claim more than one education benefit in a tax year as long as you do not use the same expenses for more than one benefit.Exception: Qualified expenses used to claim education benefits can also be used to eliminate the 10% penalty on premature IRA distributions.For each student, you can elect for any year only one of the credits. For example, if you elect to claim the American Opportunity Credit for the student in 2019, you cannot use that same student’s qualified education expenses to figure the Lifetime Learning Credit for 2019.

Exception:benefits can also be used to eliminate the 10% penalty on premature IRA distributions.For each student, you can elect for any year only one of the credits. For example, if you elect to claim the Ameri




at an eligible educational institution for yourself, your spouse, or your dependent, you may be able to take advantage of one or more of the education tax benefits.You can claim more than one education benefit in a tax year as long as you do not use the same expenses for more than one benefit.Exception: Qualified expenses used to claim education

at an eligible educational institution for yourself, your spouse, or your dependent, you may be able to take advantage of one or more of the education tax benefits.You can claim more than one education benefit in a tax year as long as you do not use the same expenses for more than one benefit.Exception:




the credits. For example, if you elect to claim the American Opportunity Credit for the student in 2019, you cannot use that same student’s qualified education expenses to figure the Lifetime Learning Credit for 2019.

Education Deductions.Deductions reduce the amount of income subject to in









Insert Your Logo &

Address

Landscape

UnlimitedPrinting!

Landscape and Portrait versions available.

• Access over 100 handouts.• Login to your online subscription immediately.• Customize handouts with your logo (optional) and

address.• Print handouts for distribution (unlimited printing).• Create PDFs to email your clients.• Includes a printed reference guide that ships in

December.

• Tax Brochures: Explain tax concepts to your clients.• Planning Tips: Help your clients minimize tax liability.• Newsletters: Released mid-January, mid-April,

mid-June, and mid-September.• Organizers: Get your clients ready for tax season.

Includes individual and business versions.• Updates: Handouts are updated throughout the year

to refl ect new tax law.

HANDOUTS OVERVIEW

• Place a handout in each client’s folder before tax season.• Send handouts to new clients for a great fi rst impression.• During tax season, email/mail handouts to clients who

havenot yet scheduled their appointment.

• Place handouts on your website or distribute via social media.

• Keep your name in front of clients all year by sending quarterly newsletters.

• Provide customized handouts in your reception area.

SUGGESTED USES

HOW IT WORKS

Dan Lavinio, New Berlin, WI

“Reasonably priced and a plethora of “Reasonably priced and a plethora of information. Th e easy to read content is information. Th e easy to read content is

eff ective when communicating with clients.”eff ective when communicating with clients.”


CLIENT HANDOUTS CATALOGView Sample Handouts: thetaxbook.com/handouts

* Spanish version available.

HandoutsClient

• NEW! American Rescue Plan of 2021• Alternative Minimum Tax• Audits• Cancellation of Debt - Insolvency• Capital Gains and Losses• Charitable Contributions Guide• Charitable Contributions Noncash FMV Guide • Charitable Contributions Recordkeeping Requirements• Clergy - Religious Workers• Consumer Credit• Crowdfunding• Dependent Support Worksheet• Divorce and Taxes• Education Tax Benefits• Estimated Taxes• Extending Your Individual Income Tax Return• Families With Children*• Filing Status• Foreign Bank and Financial Accounts• Gambling Log• Health Care Reform - Cost Sharing Reduction and the Premium Tax Credit• Health Care Reform - Health Insurance Marketplace• Health Savings Accounts (HSAs)• High-Income Taxpayers• Hobby vs. Business• Household Employees• Identity Theft and Your Taxes• Itemized Deductions - Casualty and Theft Losses• Itemized Deductions - Homeowners• Itemized Deductions - Interest Paid• Itemized Deductions - Medical Expenses*• Itemized Deductions - Taxes Paid• Kiddie Tax• Moving Expenses• Multi-State Taxation• Pandemic Relief • Referrals Appreciated• Sale of a Principal Residence• Standard vs. Itemized Deduction• Stock Options - Same Day Sales• Tax Facts and Figures• Tax Scams - Protect Yourself• Taxable Social Security Benefits• Taxpayers Who Receive an IRS Notice• Tipped Employees• Virtual Currency (Cryptocurrency)• What Should You Do if You Can’t Pay Your Taxes?• Withholding - Filling Out Form W-4

• Business Entity Comparison Chart• Business Entity Pros and Cons• Business Expenses Worksheet• Business Financing - Don’t Intermingle Funds• Business Management Tips• Business Owners - Taking Money Out of a Business• Business Use of Home• Buy-Sell Agreements• Corporation Meeting Requirements• Daycare Providers Income and Expenses• Employee or Independent Contractor*• Excess Business Loss and Net Operating Loss (NOL)• Expense Reimbursements for Employees• Farm Expenses Worksheet• Farm Income Worksheet• Farm Inventory and Accounting Methods• Farm Vehicles and Fuels• Form 1099-MISC and Form 1099-NEC Reporting• Fringe Benefits• Health Care Reform - Employer Insurance Requirement• Inventory Cost of Goods Sold• Limited Liability Companies (LLCs)• Marketing Your Business• Mileage and Expense Log• On-Demand Drivers• Partnerships• Qualified Business Income Deduction• Real Estate Professionals• Recordkeeping for Tax Purposes• Rental Income and Expense Worksheet• Rental Income and Expenses• Rental Real Estate QBI Safe Harbor• Repairs vs. Improvements• S Corporations• Self-Employment Tax• Short-Term Rentals• Small Business Health Care Tax Credit• Starting a Business• Vehicles - Business Use

• College Financial Aid Planning• Early Retirement Distributions - SEPP• Estate Planning, Wills, Probate, and Transfer of Assets• Financial Planning Guide• Moving Out Worksheet• Newlyweds Tax Tips• Pension Income Planning• Saving for College

• Individual Retirement Accounts - Backdoor Roth IRA• Individual Retirement Accounts - Beneficiaries of IRAs and Qualified Plans• Individual Retirement Accounts - Kinds of IRAs and Prohibited Transactions• Individual Retirement Accounts - Qualified Charitable Distribution (QCD)• Individual Retirement Accounts - Required Minimum Distributions (RMDs)• Individual Retirement Accounts - Roth IRAs• Individual Retirement Accounts - Traditional IRAs• Retirement Income• Reverse Mortgages• Saving for Retirement• Social Security and Medicare

• Death of a Taxpayer• Estate Tax (Form 706)• Gift Tax • Login to access quarterly

newsletters.

• C Corporation Tax Organizer• General Engagement Letter for Individual Tax Preparation• Individual Taxpayer Organizer*• Individual Taxpayer Organizer - Rental Property• Individual Taxpayer Organizer - Sole Proprietorship• LLC Tax Organizer• Paid Preparer Due Diligence Checklist• Partnership Tax Organizer• S Corporation Tax Organizer

1040 BUSINESS PLANNING

RETIREMENT

ESTATES &TRUSTS

NEWSLETTERS

ORGANZIERS

1040

7 CATEGORIES OF HANDOUTS TO CHOOSE FROM!


20 Hours

$189 $9.45/Hr.

$119 $14.88/Hr.

8 Hours

$39 $19.50/Hr.

2 Hours

We offer 20 online continuing professional education (CPE) courses presented in self-study format.thetaxbook.com/onlinecpe

Online CPE hours do not expire. Subject to CPE policy found at thetaxbook.com/cpepolicy.

ONLINE CPE HOURSPurchase hours to complete any course!

Average Customer Satisfaction Rating for CPE Courses

OnlineCPE

• Purchase hours to complete any course.• Receive instant access to hours.• Read courses online or print provided PDF.• Share hours with your staff. Assign courses.• Track completed courses.• Print certificates of completions.• Course results are uploaded to IRS and CTEC.

HOW IT WORKS

Tax Materials, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org

Tax Materials, Inc. has been approved by the State Board of Tax Practitioners of Oregon to provide continuing education for tax practitioners in Oregon.

NYS Sponsor ID Number is 002569

California Tax Education Council

® APPROVEDEDUCATION PROVIDER

California Tax Education Council

® APPROVEDEDUCATION PROVIDER

FEDERAL TAX

UDPATE3 HOURS

Course includes individual tax law updates, provisions of the American Rescue Plan, extended and modified CARES Act provisions, and more.Released 7/15

3 HOURS

INCOME, DEDUCTIONS,

CREDITS

Course includes the tax treatment of different types of income, deductions and credits. Includes dividends, capital gains, standard and itemized deductions, and refundable and nonrefundable creditsReleased 9/15

3 HOURS

HOTTOPICS

Marijuana industry, virtual currency and taxpayer rights continue to be growing areas of concern to the IRS. Learn about the tax consequences and reporting requirement for each of these topics.Released 9/15

Do you have a new preparer in the office? Want to brush up on the basics? Use these courses to get up to speed before tax season.

TRAINING COURSES

5 HOURS

INDIVIDUALTAX PREP

101

4 HOURS

INDIVIDUALTAX PREP

201

Review the basics for individual returns. Includes filing status, dependents, income, itemized deductions, tax credits, and more.Released 9/15

Review advanced topics for individual returns. Includes estimated tax payments, sole proprietorships, self-employment income, investment income, and more.Released 9/15

2As an expert in your field, you know the importance of staying up-to-date on the tax industry. The following courses are considered “must-take” because they cover subjects with significant changes within the past year.

MUST-TAKE COURSES3

Courses are valid for CPAs, EAs, and tax

professionals.Complete learning objectives, course overviews,

and other course information is available atthetaxbook.com/onlinecpe


Credentialed tax professionals have CPE requirements dictated by the IRS and/or their state. Each year we offer three Ethics courses, the AFTR course, and a California Tax Review course to fulfill specific CPE requirements.

6 HOURS

2022 ANNUALFEDERAL TAXREFRESHER

2 HOURS

AVOIDETHICAL

VIOLATIONS

2 HOURS

CIRCULAR230

ETHICS

5 HOURS

CALIFORNIA TAX REVIEW FOR CRTPS

2 HOURS

DISCLOSINGCLIENT

INFORMATION

Every year we release ten courses covering various professions, specific topics, and unique tax situation. Based on popularity and requests, some courses will rotate yearly. The following courses will be available one year from release date. Take them now before they are gone! All courses released 9/15/21 and available through 9/15/22.

3 HOURS

ADVANCED BUSINESS

TOPICS

1 HOUR

HIGH INCOME

TAXPAYERS

1 HOUR

DATA SECURITY

4 HOURS

SELF- EMPLOYED

4 HOURS

CLIENTSWITH

DEPENDENTS

1 HOUR

INNOCENT OR INJURED

SPOUSE RELIEF

1 HOUR

DEATHOF A

TAXPAYER

1 HOUR

SHARING/GIG ECONOMY

2 HOURS

FOREIGN TAX

ISSUES

2 HOURS

TRUSTS

Non-exempt tax professionals who participate in the Annual Filing Season Program (AFSP) are required to complete the Annual Federal Tax Refresher (AFTR) course. Learn more at www.thetaxbook.com/AFTR.Released 6/15

This course satisfies the CTEC 5 hour California state tax requirement for CRTPs. Content includes rules for individuals, partnerships, LLCs, corporations, estates and trusts, and more.Released 2/1

Several professional credentials require two hours of Ethics each year. We offer three educational and entertaining courses to fulfil your Ethics requirement.Released 9/15

TTB Bundle & Jacob Special

Includes 8 Hours

LIMITED TIME COURSES

COMPLIANCE COURSES5

“TheTaxBook offers some of the best and most affordable CPE courses that I “TheTaxBook offers some of the best and most affordable CPE courses that I have taken. I really like the examples and key facts.”have taken. I really like the examples and key facts.”

Receive free Online CPE hours

for products purchased.

WebLibrary Plus5 Hours

WebLibrary2 Hours

Additional Users1 Hour Per User

TheTaxBook Series1 Hour Per Book

James Bailey, Frederick, MD

10

OnlineCPE

FREE ONLINE CPE HOURS!


WHY

11

Don’t waste time searching the Internet to fi nd answers

to your tax questions.

TheTaxBook is continually voted the #1 tax research solution in the industry.

Providing fast and accurate service to your clients adds credibility to your practice.

Every purchase includes access to coverage of the

latest tax legislation and tax industry news.

100% satisfaction is guaranteed.

Gain access to a stockpile of useful tools including organizers, engagement

letters, and more.

Don’t put your reputation on the line based on search

results from random Internet sites.

Use our message board to interact and ask

questions with fellow tax professionals.

Time is Money

Use the Best

Look Good

Industry News

No Risk

Free Tools

Accuracy

Message Board

G

uarante

e

Satisfaction

Our authors know what you need in a fast-answer tax research book because, like you, they prepare tax returns.

WRITTEN EXCLUSIVELY BY PRACTICING TAX PREPARERS!

Over 100 combined years of fast-answer writing experience!

Over 100 combined years of fast-answer writing experience!

100100++YEARSYEARS

Use TheTaxBook the entire tax season. If it did not meet

your expectations, return it by April 15 for a full refund.

SATISFACTION GUARANTEED

SATISFACTION CUSTOMER

RATINGSATISFACTION

CUSTOMER

RATING

Highest published customer satisfaction rating in the industry.

Guaranteed Coverage of New Tax Law Through December 1! TheTaxBook will contain coverage of any applicable tax law change which

occurs on or before December 1.

ACCURACY MATTERS!

Plus we provide free coverage of new federal tax laws passed after

the books ship.thetaxbook.com/updates

Founded in 2005, TheTaxBook is a small, 100% American-owned company, located in Minnetonka, Minnesota. As a small company, we realize that each dollar you spend was hard earned and must bring true value.

It is our passion to provide the best products at the best prices. Please use our products for the 2021 tax season!Sincerely, the Meyer Family

A TRADITION OFQUALITY & VALUE!

FAMILY OWNED, AMERICAN MADE!


FREE SERVICES & QUANTITY DISCOUNT

$$19.50 Retail 19.50 Retail Value PerValue PerCPE HourCPE Hour

Product Free OnlineCPE Hours

Retail Value

TheTaxBook Series 1 hour per book $ 19.50

WebLibrary Plus 1st User 5 hours per 1st user $ 97.50

WebLibrary 1st User 2 hours per 1st user $39.00

Additional Users 1 hour per additional user $19.50

Popular Tools for Tax Pros

Tax Organizers: Individual, Sole Proprietor, LLC, C Corporation, S Corporation

Consent to Disclose Information

Engagement Letter

Estate Inventory Worksheet

Fair Market Value Guide for Noncash Contributions

Depreciation Worksheet

Find coverage of new legislation and industry news.

Purchase any title from TheTaxBook Series, or a WebLibrary User, and receive free Online CPE Hours for each product purchased.

Deluxe Edition PlusDeluxe Supplement1040 EditionSmall Business All States EditionCalifornia Edition

Depreciation Social Security & MedicareWhat’s New Early EditionWhat’s New Tax Season EditionFastTaxFacts

Do you have questions about a client’s tax return? Use our Message Board to ask a fellow tax preparer. The Message Board is exclusive to our customers and not available to the general public.

Find pages in TheTaxBook affected by new tax law. Updates provided in PDF format for easy printing.

5 FREE SERVICES INCLUDED WITH ALL ORDERS

TAX INDUSTRY NEWS

MESSAGE BOARD

THETAXBOOK UPDATES

1

Electronic printable documents tax professionals use to provide disclosures, record keeping, substantiation, and more.

TOOLS FOR TAX PROS3

FREE ONLINE CPE HOURS

THETAXBOOK SERIES

2

4

5

Order 3 items, take$5 OFF per item.

Order 11+ items, take$7 OFF per item.

Quantity Discount

1– 2 Items

3 – 10 Items

11+ Items

N/A$ 5 Off

Per Item$ 7 Off

Per Item

QUANTITY DISCOUNTSThe more you buy, the more you save! Buy 3 or

More and SAVE!

Learn more at: thetaxbook.com/freeservices


Special Offers

Rev. 04/21

HandoutsClient

Deluxe Edition Plus pg 2 $99WebLibrary Plus 1st User pg 7 $2798 Online CPE Hours pg 12 $119Free Shipping $7


Deluxe Edition Plus pg 2 $99WebLibrary Plus 1st User pg 7 $279Client Handouts pg 10 $ 1498 Online CPE Hours pg 12 $119Free Shipping $7



TheTaxBookTheTaxBook


JACOBSPECIALBUNDLE Save $155

Off Retail!

ONLY

$349Save $204Off Retail!

ONLY

$449

DELUXE DEAL

Save $43Off Retail!

ONLY

$139Deluxe Edition Plus $99Deluxe Supplement $69Free Shipping $14


BUNDLE

BESTSellers

WHAT’S NEW PACKAGEStay up-to-date on the latest tax law changes and industry news. Includes coverage of the American Rescue Plan Act of 2021 and the Consolidated Appropriations Act, 2021.

Tabs include: What’s New Summary, Individuals, Employers, Businesses, Retirement Plans, Planning, Miscellaneous Tax Provisions

Early Edition $69Tax Season Edition $69Free Shipping $14

Total Retail Value $152Early Edition / Tax Season Edition

$69 each

Save $63Off Retail!

ONLY

$89

Add a User to the TTB Bundle or Jacob Special for Only $149! Includes Deluxe Edition Plus, WebLibrary Plus Add User, 2 Online CPE Hours & Free Shipping ($290 Retail Value!)

NEED ANOTHER USER?

The Deluxe Edition Plus is our best selling book. The Deluxe Supplement is the perfect complement to the Deluxe Edition Plus and includes expanded small business topics. Purchase both books and save!

2021 TTB Brochure Retail 0521.indd - TheTaxBook

Documents

Transcript of 2021 TTB Brochure Retail 0521.indd - TheTaxBook