If an individual taxpayer receives qualified business income (QBI) during the tax year, the individual can include Form 8995 to calculate their QBI deduction. This example covers QBI deduction with loss carryforwards.
Form 1099-INT reports the amount of interest income paid to a recipient for a given tax year. This example covers where to report these amounts on Schedule B of the Form 1040 (US Individual Income Tax Return).
Some U.S. taxpayers who purchase eligible health insurance plans through the marketplace are eligible for a government subsidy to cover a portion of the premiums. The taxpayer must reconcile the amounts on Form 8962 with their Form 1040.
The earned income credit (EIC) is a beneficial federal tax credit available to low to moderate income earners. An election was available for the 2021 tax year to use your earnings from 2019 to calculate the credit.
Taxpayers that receive a Form 1095-A each year need to make sure they are reconciling their premium tax credit on Form 8962. If a taxpayer forgets to include Form 8962, the IRS may reject the federal tax return.
