 Here we are in our example Form 1040, populating it with LASERT tax software. You don't need tax software to follow along, but it's a great tool to run scenarios with. You can also find the Form 1040 related forms and schedules on the IRS website, irs.gov, irs.gov. Starting point, like normal, we got the single filer, Mr. Anderson, no dependence, 100,000 on the income line, 12,950 standard deduction to get us down to the 87,050 on the taxable income. We're mirroring that over here in our income tax formula, Excel worksheet, 100,000, 12,950, 87,050 here, and page two of the tax software, calculating the tax at the 14774, 15,000 on the withholdings, getting us to the 226 at the bottom line, mirroring that over here as well. All right, so our focus now, if I go on back to page one, is to take a look at the schedule one. Let's open up the schedule one. We wanna look at page two, page number two, and we're thinking about the penalty on early withdrawal of savings, and then we'll move on to the alimony. Now, the first one's pretty straightforward. Obviously, we would like to be advising ourselves and clients to not have a situation where they have to pull money out early and be subject to a penalty, because for example, if you put money into a savings account, you're not gonna make much money on your checking account in terms of interest, but if you put it into a CD or something like that, then you might make a little bit more money because you're telling the bank you're gonna lock down that money, you're not gonna pull it out, which means the bank has some more capacity to take that money and invest it on their end, and so on. If you pull the money out early, when you told them you wouldn't, you might be subject to the penalty, so you wanna have a sufficient amount of liquid savings that you can pull out in the event of like an emergency or something, but if this happens, it should be fairly straightforward. Hopefully you don't see it that much, but you'll have a 1099 INT, and then you'll have the interest down here on the early withdrawal, and so if I'm doing my data input, it's pretty straightforward. I can say we've got the income, let's say we've got the interest income, and let's say we had 100, or 100, let's just say 1,000 of interest, but then there was $100 penalty, so I'll just put the penalty down here, $100, and now if I go back to the forms, I'm gonna say, let's go to the 1040, there's the $100,000, there's the $1,000 for the income for the interest, there's the $100 for the penalty, which is pulled in from schedule one, and there is, this is page two of schedule one, there's the penalty, so there's the penalty, summing up to the bottom, pulling up to page one of the 1040 here, so a fairly straightforward, let's remove that one, I won't even do it on the Excel worksheet because hopefully we won't see that one too often and it's fairly straightforward. Example, let's take a look at the alimony, the alimony, that divorce was like the alamo, and now we're dealing with the alimony, okay? So now if we go down here, we've got the alimony stuff, now we talked before, notice there's gonna be symmetry mainly with the tax code usually, so if there's a payer that gets a deduction, then the recipient, the IRS, is usually gonna force them to have income, so if this happened before the cutoff date, the divorce agreement, which I believe was December 31st, 2018, then there was this issue as to whether the payment going from one spouse to the other is categorized as child support or alimony, if it was child support, then on the deduction side of things, the person paying, the spouse paying doesn't get a benefit for child support and the one that's receiving the money doesn't have to include it in income, so that would be a benefit for the recipient from a tax situation and then if it was alimony, then the one that's paying it possibly could get a deduction at that time, if it was before the cutoff date, which would be of course a benefit and then they usually have to give the social security number of the spouse so that the IRS can collect the money on the income side and so on the income side of things, you would have the alimony that would be received, that would be non-beneficial for the recipient.