 Income tax 2021-2022 tax software example, Archer MSA deduction and jury duty pay. Get ready to get refunds to the max, diving into income tax 2021-2022. Lesser tax software, you don't need access to tax software to follow along, but you might want the form 1040, which you can find at the IRS website, irs.gov, irs.gov, starting out with the single filer, Adam Smith, living in Beverly Hills, 90210, the wages at line one, 100,000, 12,550 standard deduction, getting us to the 87,450 taxable income, mirroring that over on the income tax equation, where we have the 100,000, we have then the 12,550 and the 87,450, letting the software calculate the tax here on page number two. And that is at the 15,15. So let's put that in over here. That's our starting point, 15015. That's our starting point back on over. We're focused in on page one, number 10, adjustments to income from schedule one right there. Let's put a little check mark on it this time. That's what we should be doing. Check mark, schedule number two. This is gonna be the, I'm sorry, schedule one, page number two. And then down here, online 23, we have the Archer MSA deduction 24. Within the other deductions, we got the jury duty pay. You could see instructions related to that. Now it's less likely you're gonna see the Archer MSA deduction. It's more likely that you would see then up top the health savings account deduction and you might have documentation, which would look something like this, the form 5498SA, which is the HSA, Archer MSA or Medicare Advantage. And it would indicate down here in line six, which it would be. And if you have any questions on that, you've got the instructions on the right hand side. And then we've got the jury duty, which is kind of that weird situation where we might have gotten reimbursed for the jury duty. So that was a kind of an interesting scenario. In other words, here we're gonna think about an enter your jury duty pay if you gave the pay to your employer because your employer paid your salary while you served on the jury duty. So let's see if we can think about the scenario here. If we got jury duty pay, then in page one where we had income, we have the additional income, and let's say we've got the jury duty, and that means that we would get like a 1099 or something from the local, from the locale, the state who charges us the jury duty. And we'd have to report that as income. So we'd say, okay, that then is on part one, we're in the other income. And so, and you might be saying, hey, I'm on the deduction side of things. Yeah, but we got, we're telling the story here. So you gotta have the income first. We have to report the income because if we don't report the income, the IRS will see the 1099 from the state, and they're gonna say you didn't put that 1000 in place, and therefore it could delay the return. So that pulls over to the page one. So now on page one, let's bring it back on up. My wages was at 100,000, 100,000, and then going back on over. So there we have it. There's the 1000, there's the 101. But you're gonna say, hey, but my employer paid me for the time that I went to jury duty, and then they made me take that $1,000 and give it to them because they paid me during my time at the jury duty. So I didn't get to keep this $1,000. So I shouldn't have to report it as income because now I gotta pay taxes on it when I didn't get to keep it because my employer paid me for that. Well, you can't take it away here because if you took it away, then the IRS will get confused because they gave you a 1099. So how do you fix that? Well, they say, well, then we'll give you the deduction on page two that'll net it out. So if I go to page two here, then that's when we go into this jury duty pay and we can say, okay, I'll just net it out so that it doesn't mess up my filing and I don't have to pay taxes on it because I didn't get to keep that money. Jury duty pay, so it's gonna go right there going back to the forms. So there it is. So now you got it on page one and page two, income and deduction netting itself out to get to the AGI adjusted gross income. So now we've got the wages up top, including the 1,000 getting us the 101, but then we just took it right back out again and at the 1,000 here, bringing us back down to the 100,000. And so that's back to our starting point. So kind of interesting scenario, kind of work around to get to make things work here. So if you were to mirror that on our tax formula, we could say, okay, we got jury dirty duty pay, jury duty, jury duty pay. And that's gonna be some kind of income line item here, which I put on schedule one. It's on schedule one over here, jury duty at 1,000 and that pulls over to page one. So now that's 101, but I didn't get to keep it. So I get a deduction for it that's an above the line that's gonna be an adjustment for our adjusted gross income and above the line deduction, schedule one deduction. So I'm gonna go on over and say deduction, not itemized and it's gonna be called jury duty. Let's make it, let's give some more room here, a little bit more elbow room. If you please, jury, jury duty pay 1,000, 1,000 and we'll put some brackets around it, bracketized it, bracketized and then we'll make this formula go down a bit. There it is pulling that back on over. So now we've got it going back out again. So we're back down to the 100,000 adjusted gross income and we reported the income so that the IRS won't get confused. Don't confuse the IRS. It causes long delays and problems and it's easy to do. They get confused easy. Standard deduction 12, 5, 50 still. So we're still at the 87, 450, going back on over to the return still at the 87, 450 page number two. Then we're at the 15, 15 and 15, 15 there. So there is that. If you have any other kind of, you could go through some of these other deductions down here if they come up in the other adjustments. So we got the jury duty and you could take a look at some of the other items if you had some other items less commonly coming up here. And if none of those apply, then possibly you can look into the other adjustment line number Z.